Chapter 13 bankruptcy enables eligible individuals to repay debts over a three- to five-year period through a court-approved plan. Your repayment options and the consequences of unforeseen expenses can be clarified by a chapter 13 bankruptcy lawyer. Typically, debts that were present prior to the submission of your bankruptcy petition are disclosed. Nevertheless, your current repayment plan typically does not automatically incorporate any new debts that are incurred after the fact, such as medical expenses, tax obligations, or car loans. It may be necessary to manage these expenses separately or obtain court sanction for specific arrangements.
Can I add a new debt that arises after I have enrolled?
Occasionally, but it is not an automatic process. In general, debts that are acquired subsequent to the filing of a Chapter 13 bankruptcy remain outside the scope of the original plan. Court approval may be required, and your attorney may request a plan amendment, contingent upon the circumstances. Certain expenses necessitate distinct payment. For instance, it may be necessary to make separate arrangements for new medical bills or car loans. The Massachusetts Bankruptcy Center can assist you in comprehending your options and determining whether it is advisable to consult a bankruptcy attorney regarding your particular circumstances. Please reach out to us to address your bankruptcy concerns and to gain insight into the available options for managing unforeseen debts during repayment.