Most new debt that is incurred after filing for a Chapter 13 bankruptcy must be paid outside the plan. The bankruptcy plan will generally only include debt that was accrued before the filing and included in the bankruptcy forms for the bankruptcy filing. Additionally, the debtor must obtain the permission of the Chapter 13 Trustee to incur any additional voluntary debt during the course of the plan.
Some courts disapprove of new debts incurred after filling for Chapter 13 bankruptcy. Courts worry that the debtor will not pay off their Chapter 13 plan if new debts are steadily arising. As a result, some courts may issue an order prohibiting the debtor from incurring new debts until the Chapter 13 case is over, unless the Chapter 13 trustee has previously approved the new debts.
However, it is to be expected that you will incur some debt during the Chapter 13 case, which generally lasts three to five years. If you have filed Chapter 13 bankruptcy and plan on incurring new debt, it is important that you seek the approval of the Chapter 13 trustee before incurring such debt or credit after the case has been filed. Certain debt does not have to have the prior approval of the bankruptcy trustee. Debts that are incurred as a result of regular and basic living, such as telephone bills and utility bills, do not require prior approval.
In a Chapter 7 bankruptcy case, new debts cannot be added to a Chapter 7 bankruptcy petition to be discharged. They cannot be included in an amended petition. Only debts incurred prior to the filing of the petition can be included. The debtor will remain responsible for paying post petition debts.