Paypal 4 Installments or Paypal Monthly

[mclawdawg]

Hi all,

Has anyone in a Chapter 13 utilized any of the following: I'm looking at obtaining an appliance for my house. My Chapter 13 plan states that I'm not allowed to incur debt & that I'm not allowed any credit cards, etc. I was wondering where this qualifies as financing. Yes the monthly installments check your credit and approve you for an interest rate which is essentially using credit right? The monthly payments help significantly in affording this without breaking the bank and maintaining the Chapter 13 monthly payment. I've noticed the 4 installments don't check for anything. You just pay up front & then every time you are paid it comes out. I know it's most likely a poor decision, thoughts anyone?

[justbroke]

I believe this is still credit whether it's a traditional credit card or you are using an installment loan.

I would definitely not use a company that takes payroll deductions while the debtor is in a Chapter 13. It just spells disaster to me. If you are using a checking account to make those payment it is probably not a good idea.

However, please consider this. Chapter 13s are designed to deal with "life" happening. If you have an urgent need to purchase household appliances or even fix your vehicle, your attorney can seek permission to abate payments and even keep some or all of a tax refund.

As a general reminder to every Chapter 13 debtor reading, whenever you have a heavy financial issue such as (1) loss or reduction of income, or (2) a "heavy" financial burden (fix your car, get a new refrigerator, etc), please do yourself a favor. Immediately contact your attorney. Immediately contact your attorney. Immediately contact your attorney. Do not try to fix the issue on your own before obtaining advice on what the Chapter 13 Trustee and your attorney may be able to allow in order to rectify the situation.

Worth repeating: Heavy financial need or hardship?... Immediately contact your attorney. A Chapter 13 is not a death sentence, although it may feel that way.

[Carmella]

We were allowed to have a small amount of credit I think it was $500. I used Klarna and After Pay, my limits were higher, but I never charged anything that expensive.

Does your Chapter 13 paperwork say anything about an allowed amount of credit? I know you posted you cannot incur debt.

I agree with contacting your attorney before making a mistake that could be costly.

The other alternative is to save up 4 monthly "payments" and when you have enough cash then buy the appliance.

What type of appliance do you need? Is there a way to get along without it for 4 months to save up $$.

[mh321]

I have used Zip and Paypal Pay in 4 a couple times with no issues.

One thing to be careful on is with PayPal Monthly, they will do a hard pull on your credit. They also say they could report it to the credit bureaus (Will my Pay Monthly installment loan be reported to the credit bureaus? (paypal.com)).

With Paypal Pay in 4, it's a soft check and doesn't report, provided you complete the payments on time.

That said, check with your attorney.