New Debt in Chapter 13 Case

A Debtor cannot acquire new debt while in an active Chapter 13 case without receiving approval of the Chapter 13 Trustee and/or the Bankruptcy Court.

Sometimes circumstances dictate that you must acquire new debt during a pending Chapter 13 case.

If you find yourself in such a situation, then please contact us so we can discuss your individual circumstances.

The withdrawal of money from a 401K plan by the Debtor is not considered the acquiring of new debt, because technically the Debtor is simply borrowing their own money.

More information on incurring debt while you are in a Chapter 13 bankruptcy can be found on the Trustee’s website here.