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received check in mail from loan company under 800, but in chapter 13, how would the trustee know if i cashed the check from loan company and what would happen if they find out about the check. My plan is to pay the loan right back after recieving income tax check. How would the trustee find out?
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Bankruptcy Attorney serving Burbank, CA
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Law Office of Mark J. Markus
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I believe I answered this question previously, but many plan confirmation orders contain a prohibition on incurring any new debt above a certain amount (usually $500 here in the Central District of California). Probably not much would happen if the Trustee found out. However, unless you are paying 100% to your unsecured creditors through your plan, your tax refund may need to be turned over to the Trustee (if it is for a post-bankruptcy filing period).
Mark Markus has been practicing exclusively bankruptcy law in California since 1991. He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization, AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.
Answered on Jan 02nd, 2013 at 9:45 PM