Post petition debt
Adding New Debt to your Pending Bankruptcy
You get into debt whether it be due to medical issues, gambling, job loss, overspending, etc. and you take the step to file a bankruptcy, either Chapter 7 or Chapter 13. One way or another after the bankruptcy or during the pendency of the bankruptcy, depending on the Chapter filed, you incur additional debt that you cannot afford to pay back. What are your choices? Like with most questions, it depends on whether you filed a Chapter 7 or Chapter 13. It also depends on how long it has been since the bankruptcy was filed.
If you previously filed a Chapter 7, you cannot file another Chapter 7 until 8 years have passed from the day the first Chapter 7 was filed. However, you may not be out of luck. You can file a Chapter 13. Depending on how long it has been since the Chapter 7 was filed will determine whether you will be eligible for a discharge in the Chapter 13. 6 years must have passed from the day the Chapter 7 was filed in order to receive a discharge in the Chapter 13. Even if 6 years have not passed since the filing of the Chapter 7, you can pay the unsecured debt back at 0% interest over 5 years.
If you previously filed a Chapter 13, your options will vary based on whether you are still in the Chapter 13 and if not, whether you received a discharge in the Chapter 13. If you are still in the Chapter 13, post petition debt cannot be added to the current Chapter 13. The only way to pay or discharge the post petition debt would be to dismiss the current Chapter 13 and either file a new Chapter 13 or a Chapter 7 depending on other prior filings, income, etc. If you are no longer in the Chapter 13 you can file a Chapter 13 to either receive a discharge or to pay the debt at 0% over 5 years.
All of the options discussed herein are fact specific and therefore to determine your options, you should speak to an experienced bankruptcy attorney. Although many people do not plan to file multiple bankruptcies, situations arise where this may be necessary. Contact our office today to schedule a free no obligation consultation with us to determine the options for your specific situation.