How does the Trustee know about new debt?

[otguy2003]

OK, lets say I were to get a credit offer to buy a car or a credit card etc. and I accepted said offer. How does the trustee know about these things after my case is confirmed? Do they run my credit regularly? Drive by my house to see what I have new?

[HHM]

The typical way is because you stop making your chapter 13 plan payments because the new credit payment means you cannot afford the plan

They don't really follow-up, so to answer your question, in a practical sense, they "probably" won't find out. A credit card would be minor, but a car offer would probably be discovered and you would be violating several sections of the BK code (transfering assets of the BK estate, taking on new credit without permission, etc) if you purchased a car (trading or selling your existing one) without premission. Thus, "if" the trustee found out, they could dismiss your case or worse, deny you discharge.

[Ifonly]

My question is somewhat related.

I have to surrender my van in our CH13 which means I have to purchase another vehicle (used, and we're trying to stay under $8,000 or $9,000).

My lawyer put $450.00/month for a second vehicle in my budget. I'm assuming that this implies that I am taking on another payment/debt. Especially since I don't have $8,000 or $9,000 sitting around.

This is a reasonable assumption, yes? And will the trustee care where I borrow this money from.

We went to a few car dealers yesterday and, as expected, it will be extremely difficult for us to even get a "loan-shark" type loan and the buy here, pay here places overprice their vehicles by several thousand to start with.

My husband's employer has offered to help us during this difficult time and we were hoping they would loan us the money for the car and we would repay them same as any other creditor and we would have a reasonable interest rate. My payment probably wouldn't even be the $450/month my lawyer wrote down.

Would the trustee care? And if so, why? Wouldn't this be smarter borrowing on my part which is part of the goal of BK? To be more fiscally aware, so to speak?

[car67]

You might get a 3 meals and a cot if you take on more credit in a active bankruptcy? I would never entertain the idea without direct approval of the
courts

[bigreddog]

the three meals sound good. but I'm not quite sure about the cot. I'd miss my tempurpedic. And the entertainment is awful.
But I think we're headed there. We had all of our business vehicles in for inspection and they needed $3000 worth of work. Only thing we could do was put them on the mobil card. Our attorney now wants to see us tomorrow. I think one should do as others have said and check w/ your attorney before taking on any debt just to be safe......just my 2 pesos.

[Ifonly]

The lawyer put the payment in my plan so if the plan is approved? Does anyone have actual experience with this in a CH13 vs. speculation?