Oftentimes a debtor who files for Chapter 13 bankruptcy will incur additional debt over the course of his/her repayment plan of up to five years. According to the bankruptcy law, certain debts that are classified as “necessary for the debtor’s performance under the plan” can be included in the Chapter 13 bankruptcy plan post-petition.
For example, if a debtor in Chapter 13 bankruptcy gets sick and is hospitalized, he/she may incur large medical bills that he/she cannot afford to pay. In this case the bankruptcy court may allow the debts to be included in the Chapter 13 bankruptcy case. Or, if a debtor’s vehicle which is necessary for work breaks down and the debtor needs to take out a loan to repair the vehicle, this debt may be allowed in the Chapter 13 bankruptcy.
If a debtor wants to add additional debt to a Chapter 13 Bankruptcy case their bankruptcy attorney can request that the creditor consent to inclusion in the Chapter 13 bankruptcy case. The creditor can only be added if he/she consents to being added to the Chapter 13 bankruptcy. In most cases unsecured creditors consent to inclusion in the Chapter 13 bankruptcy because they are aware that Chapter 13 bankruptcy increases their chances of getting paid.
If a creditor does not consent to inclusion in the Chapter 13 bankruptcy plan, the debtor’s bankruptcy attorney can convert the case to a Chapter 7 Bankruptcy where the debt will most likely be discharged if the debtor has no assets.