Can You Add Debt to Chapter 13?

Bankruptcy can be an option for people who are facing financial difficulties and cannot pay their debts. Chapter 13 bankruptcy is one of the most common types of bankruptcy. It is a bankruptcy of reorganization. It allows debtors to restructure debts over time and pay creditors.

Life is unpredictable. Even after filing for bankruptcy, additional expenses can arise. Can you add debts to Chapter 13 bankruptcy after filing? We’ll explore this topic and answer the question.

Can You Add Debt to Your Existing Chapter 13?

Yes. It is a complicated process. You have to meet certain requirements.

In order to add new debt to chapter 13 the debtor needs to ask the court to change their repayment plan. You must prove that you can’t pay the debt once your lawyer files the court motion. Adding the new debt must not negatively affect the existing creditors.

For those in need, adding debt to a Chapter 13 plan of repayment can be beneficial. Medical bills, home repairs, and car repair costs, for example, can occur after a bankruptcy has been filed. You may be able to add these costs to your repayment plan if you cannot afford to pay them in addition to the amount you owe to the bankruptcy court.

The court will only include creditors who were listed in your original bankruptcy plan. If a creditor was not listed in the original bankruptcy plan, they have the right to collect that debt.

Modifying your Repayment Plan

Note that if you add debt to your repayment plan, the plan will need to be modified. It may be necessary to change the amount being paid, or the length of the repayment plan. A bankruptcy lawyer can guide you through this process and ensure that it is tailored to the debtor’s needs.

You must make payments according to schedule until the court grants the motion. Failure to do this can result in a default which could negatively impact your case and make adding debt more difficult.

Working With an Experienced Bankruptcy Attorney

It is possible to add debts to Chapter 13. It is possible to add debts into Chapter 13 but it will require a court motion and the approval of the judge overseeing your case. Remember that you can only include debts you incurred after filing bankruptcy. The court will not include all creditors.

A qualified bankruptcy lawyer can assist the debtor with the addition of debts and modification of the repayment plan. Continue to make payments according to schedule until the court approves the motion. Addition of debts to Chapter 13 is possible with the right guidance and knowledge.

For more information, call our Law Office now at 904-432-1200

This post was written by Trey Wright, a Chapter 11 Bankruptcy Lawyer in Jacksonville FL! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, specializing in bankruptcy law, estate planning, and business litigation.

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