Can You Add Debt to Chapter 13?

Chapter 13 bankruptcy is designed to help people struggling with debt who want to repay their creditors over time. It requires you to create a repayment plan that lasts three to five years.

Of course, life doesn’t always go according to plan, and circumstances can change. If you find yourself in a situation where you need to add more debt to your Chapter 13 plan, you may wonder what your options are. Can you add debt to Chapter 13?

Here’s what you need to know.

Understand Your Chapter 13 Plan

It’s important to understand your current Chapter 13 repayment plan before you try to add more debt to it.

This plan was created based on your income, living expenses, debts, and assets. It sets a specific amount that you must pay every month to your creditors. If you add more debt to your plan, it could affect the amount you pay to your creditors. Adding more debt could also change the amount you pay each month.

You’ll need to understand how your new debt will impact your current repayment plan before you make a decision.

Talk to Your Bankruptcy Attorney

If you’re considering adding debt to your Chapter 13 plan, you’ll need to talk to your bankruptcy attorney. They’ll help you understand how adding more debt will affect your repayment plan. They can also advise you on whether or not adding more debt is a good idea.

Consider the Type of Debt You Want to Add

It’s important to consider the type of debt you want to add. Not all debt can be added to a Chapter 13 repayment plan.

For example, you may not be able to add new credit card debt or personal loan debt. However, you may be able to add medical bills or emergency expenses to your plan. Your bankruptcy attorney can advise you on which debts can be added to your plan and which cannot.

Understand the Consequences of Adding More Debt

If you add more debt to your Chapter 13 plan, there may be consequences.

First, adding more debt could extend the length of your repayment plan. It could also increase the amount you pay each month. If you can’t afford to make the new payments, you could be at risk of having your bankruptcy case dismissed. It’s important to consider the consequences of adding more debt carefully.

Evaluate Your Current Financial Situation

Before you add more debt to your Chapter 13 plan, make sure you evaluate your current financial situation. Consider your income, expenses, and debts. Think about whether or not you’ll be able to make the new payments.

It’s important to be honest with yourself about your ability to repay more debt. If you’re not sure if you can afford it, talk to your bankruptcy attorney.

Adding more debt to a Chapter 13 repayment plan isn’t always the best option. It’s important to understand your current repayment plan, talk to your bankruptcy attorney, and understand the consequences of adding more debt.

If you’d like to discuss your options with an experienced professional or you’re considering filing for Chapter 13 and you aren’t sure where to begin, we can help. For more information or to schedule a consultation to discuss whether or not bankruptcy is right for you, contact R. Flay Cabiness, II, P.C. at (912) 417-5041 (Brunswick, GA); (912) 809-2141 (Hazlehurst, GA) or; (912) 324-3176 (Jesup, GA) to schedule a consultation.