After filing , is your back account/spending monitored ?

[Kycat1985]

Hello everyone,


I’m in the process of filing chapter 13. Once your plan has been approved and all your assets reported, does the trustee continue to monitor your bank account and purchases ?

[shipo]

No, at least he certainly did not in my case. The only thing he monitored was my annual tax return; if it was over $1,250, he wanted the excess. Had I needed to incur new credit, say to buy a car (which I did, but I managed to pay cash for it) or necessary home repairs, then the Trustee would have become involved. Beyond that, he/she could care less what you spend your money on as long as you are meeting your obligations as outlined in your filing.

One other thought, since you are "in the process of filing", what is the condition of your car(s)? I ask because if your car(s) is/are getting on in age, you might want to avoid the mistake I made, and buy a new(er) car now. My attorney advised me to buy a car before I filed; I opted to soldier on with my old car, and wouldn't you know it, three and a half years into my Chapter 13, rust and other corrosion got the better of the old girl and I was forced to buy something newer.

[Kycat1985]

Thanks you. That’s what I had heard. Just wanted to get others experience. We purchased a new car per our atty suggestion. I also have a leased truck that I plan on continuing to pay the lease.

[shipo]

Thanks you. That’s what I had heard. Just wanted to get others experience. We purchased a new car per our atty suggestion. I also have a leased truck that I plan on continuing to pay the lease.

How long is the lease for? That may be an issue if the lease ends during your Chapter 13.

[sophieanne]

Kycat1985 -your bank account and purchases are not monitored once your plan is confirmed. just be sure to read the confirmation notice once your case is confirmed to see what is written sbout tax returns , refunds and taking on new debt. Good luck going forward,

[Kycat1985]

How long is the lease for? That may be an issue if the lease ends during your Chapter 13.

My lease is only good for year and half. So it probably will be an issue. I mentioned to attorney but I may need to go back to that. Should I get another vehicle and let that go back? I wasn’t sure how to pull that off.

[shipo]

Kycat1985, personally, with such little time left on the lease, I would opt for either trying to convert the lease to a purchase, or getting something else now. As I found out in my Chapter 13, trying to get a loan in the middle of a bankruptcy is very tricky (hence the fact I scrimped, saved, ate beans and franks, and paid cash for my car). Either way, I would engage your attorney immediately on the issue.

I think you need to decide whether you like the car enough and can afford to keep the lease car for five more years (assuming you can convert it to a purchase), or if you want something else. Had I had it to do all over again, I probably would have just gone out and purchased something like a Toyota Corolla before I filed; then I would have exited my BK with the car paid off, and sold it so I can buy something I really liked. My only salvation is I actually like the car I bought a couple of years back, yeah, it's old (a 2006), but it's in great shape, fairly rare, and still looks contemporary all these years later; no plans to upgrade any time soon.