Phone Call Us 414-326-9231
Toll Free 866-678-9352
Text Us 414-277-7742

New debt during a Chapter 13?


If you file a Chapter 13, you are in it for the long run. Unlike a Chapter 7, which may be completed in as little as 180 days, most Chapter 13s have a duration of between three and five years. This is because of difference in how the two chapters function.

In a Chapter 7, the trustee collects any nonexempt assets, which few Chapter 7s possess, and sells them to repay some of your creditors. In most Chapter 7s, there are no nonexempt assets and within a relatively short time, you receive your discharge from your debts. 


With a Chapter 13, you will pay a portion of your debts, including the full, secured value of some property, such as a car or home. This is done by means of a Chapter 13 plan, with monthly payment to the trustee during a three to five year period. The plan is essentially a budget, which accounts for all of your income and expenses during the month.

A Chapter 13 plan may help you bring a sense of order to your finances. However, if something changes during the plan, such as the loss of a vehicle, you may need to modify your plan and take on additional debt.

While this is possible, it must be done with the approval of the bankruptcy court and the trustee. Surprisingly, you can obtain credit during a bankruptcy, although in recognition of your financial condition, it will likely be more expensive.

And the purchase must be essential to maintain your job and therefore you income to fund your plan. If you have more than one vehicle, you may have to consider carpooling, as your other creditors may object to your request for additional debt.

Because court time is at a premium, you will want to begin the process as soon as it becomes necessary and working with your bankruptcy attorney can help ensure that all of your actions comply with the requirements of the Bankruptcy Code and the court.

Source:, "Can I Buy a Car While in a Chapter 13 Bankruptcy?" Amy F., August 31, 2015

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

Milwaukee Office
633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Law Office Map

Glendale Office
6001 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Law Office Map