Bankruptcy is an option for those who face financial hardships and cannot repay debts on their own. One of the most commonly known types of bankruptcy is Chapter 13 bankruptcy, which is a reorganization bankruptcy. It provides debtors an opportunity to restructure their debts and pay their creditors over time.
Of course, life is unpredictable. Additional expenses may come up even after a bankruptcy case has been filed. Can you add debt to Chapter 13 after you’ve filed? Let’s delve into the answer to this question and shed some light on the topic.
Can You Add Debt to Your Existing Chapter 13?
Yes. However, it is not a simple process. You must meet some requirements.
To add debt to Chapter 13, the debtor must motion the court to modify their repayment plan. Once your lawyer files the motion, you must show you cannot pay the new debt outside of the plan. Additionally, adding the new debt cannot negatively impact the current creditors.
Adding debt to a Chapter 13 repayment plan can be beneficial for those who need it. For example, medical bills, home repair expenses, or car repair costs can arise after the bankruptcy case has been filed. If you can’t afford these payments in addition to what you’re repaying to the bankruptcy court, adding the costs to the repayment plan might be possible.
Remember, the court only includes creditors listed in the original bankruptcy case in the plan. Creditors have a right to collect a debt if it was not included in your original plan.
Modifying Your Repayment Plan
It is also essential to note that adding debt to a repayment plan will require modification of the repayment plan. This can lead to changes in the amount that is being paid or the duration of the repayment plan. A skilled bankruptcy attorney can help navigate this process to ensure that the modification best fits the debtor’s needs.
During the process of adding debt to Chapter 13, you must continue making payments as scheduled until the motion is granted by the court. Failing to do so can lead to a default, which will negatively impact the case and make it harder to add debt.
Work with an Experienced Bankruptcy Attorney
Adding debt to Chapter 13 is possible. However, it requires a motion to the court and approval from the judge overseeing the case. It is important to remember that you can only add debts incurred after you filed bankruptcy. The court won’t include all creditors.
Seeking the help of a qualified bankruptcy attorney can aid the debtor in the process of adding debt and modifying the repayment plan. You must also continue making payments as scheduled until the court grants the motion. With the right knowledge and guidance, adding debt to Chapter 13 can alleviate the burden of unexpected expenses for those in need.