Debt Incurred After Bankruptcy Filing in Minneapolis, Minnesota
When you file bankruptcy, the debt you have incurred prior to filing, can be included in your bankruptcy case. After filing, any new debt you incur is your responsibility and is not subject to the automatic stay of bankruptcy or the bankruptcy discharge.
In chapter 7 your credit should start improving soon after filing, which creditors will see and the offers will likely start rolling in. We generally advise not taking out debt during a Chapter 7 bankruptcy and instead waiting until you have, at least, gone through the credit repair program. After the credit repair program, one thing we suggest to work on improving your credit is a secured credit card.
After filing a Chapter 13, you can take out debt during the case, the expectation would be it is nothing that hinders your ability to make your plan payments though. Some creditors, for example, some vehicle lenders, will want a letter from either the trustee in your case or your attorney saying the new debt is allowed. The trustee in your case, depending on which district you filed in, may provide this letter for you, after obtaining information about the loan.
Although you cannot add debt incurred after filing in a Chapter 7 or Chapter 13 case, you can if you convert your original case to another chapter. This would be something your attorney will cover with you, if you qualify for a conversion.
There are timing limitations on when you can receive a bankruptcy discharge, after previously receiving one. It is wise to keep this in mind, when taking debt out post-filing bankruptcy. Your attorney should be able to answer questions about this with you.
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If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
