Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709

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
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Toll Free: 866-678-9352
Phone: 414-326-9231
Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Toll Free: 866-678-9352
Phone: 414-326-9231
Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Toll Free: 866-678-9352
Phone: 414-326-9231
Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Toll Free: 866-678-9352
Phone: 414-326-9231
Phone: 920-280-3838
Appleton Office

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

Toll Free: 866-678-9352
Phone: 414-326-9231
Phone: 262-261-0665
Brookfield Office

Glendale Office
6333 N. Green Bay Avenue
Glendale, WI 53209

Toll Free: 866-678-9352
Phone: 414-326-9231
Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.