What Can You Not Do After Filing Chapter 13?
Filing for Chapter 13 can feel like a huge weight off your shoulders. Finally, there’s a plan in place. The constant calls from creditors slow down. You get a little room to breathe.
But just because you’ve filed doesn’t mean it’s all smooth sailing from here on out.
Chapter 13 comes with a set of rules, and breaking them can throw your case off track. Some of these might seem minor, but they can have serious consequences if you’re not careful.
In this post, we’ll go over 9 things you cannot do after filing Chapter 13.
#1 Skip Or Miss Plan Payments
The heart of Chapter 13 is your payment plan. You agree to make regular payments over three to five years. It’s basically the deal you made with the court and your creditors.
Missing payments is something you cannot do.
Your plan payments are how you show you’re serious.
If you start skipping them, the court can dismiss your case. That means you lose protection from your creditors, and they can come after you again.
If something happens like a job loss, emergency, whatever, talk to your attorney and your trustee immediately. They might be able to modify your plan or help you pause payments temporarily.
Just don’t ghost the system. It’ll only make things worse.
Also Read: Chapter 13 Payment Plan Example
#2 Take On New Debt Without Approval
Thinking of getting a new credit card or financing a new car right after filing Chapter 13?
Nope. You’re not allowed to take on new debt while you’re in the middle of your repayment plan unless you get court approval. That includes stuff like:
- Personal loans
- New credit cards
- Car loans
Why? Because it affects your ability to repay your current plan. You’re already working with limited funds, and adding more debt could throw everything off balance.
Now, if it’s an emergency (say, your car breaks down and you need it to get to work) you might be able to get approval.
But again, don’t do anything without talking to your attorney first.
#3 Sell Or Transfer Property Without Permission
If you’ve got assets like a house, a car, or even something valuable like jewelry or collectibles, you can’t just sell them or give them away while you’re in Chapter 13.
Selling or transferring property without court approval is a no-go.
It might seem like no big deal. Maybe you’re thinking of selling that second car you never use or transferring ownership of your house to a family member. But the court wants to make sure you’re not trying to hide assets or avoid paying creditors what they’re owed.
Also Read: Chapter 13 Dismissal Refund
So if you’re thinking of selling, gifting, or transferring anything that has value, forget it.
Talk to your lawyer. They can guide you through getting the proper permission.
#4 Stop Cooperating With Your Trustee
Your bankruptcy trustee isn’t your enemy. You may not love dealing with them, but cooperation is part of the deal.
That means turning in documents when asked, showing up to meetings, and keeping communication open.
If you stop responding, ignore their requests, or give them incomplete info, things can go sideways quickly. The trustee has the power to ask the court to dismiss your case.
And if that happens? Back to square one with your debts.
So always work with the trustee. Respond to calls or emails. Hand over paperwork when asked. The more open you are, the smoother things go.
#5 Pay Creditors Outside The Plan
This might feel like a generous or sneaky move: “I’ll just pay my cousin back on the side” or “Let me toss a few bucks to this credit card.”
Nope. Bad idea.
In Chapter 13, payments to creditors are handled through your plan. You can’t just pay someone off on the side, even if it’s a personal loan or someone who’s been pressuring you.
That throws off the fairness of the whole system.
Everyone is supposed to get paid according to the plan, in order of priority.
If you start playing favorites or trying to get ahead of the plan, it can mess things up and possibly even get your case dismissed. So stick to the plan.
Also Read: What Can You NOT Do After Filing Chapter 7?
#6 Ignore Tax Obligations
Just because you’re in Chapter 13 doesn’t mean you get to ignore taxes. You still have to file your returns. You still have to pay any taxes that come due while you’re in the plan.
In fact, staying on top of taxes is a must.
If you don’t file on time or you rack up new tax debt during your plan, it can put your whole case at risk. The IRS doesn’t take that lightly, and neither does the court.
So make it a habit: file every year, and keep things current.
If you’re struggling with taxes, let your attorney know. They can help you figure out what to do before it becomes a major problem.
#7 Change Your Income Without Notifying The Court
Got a raise? Switched jobs? Lost hours? Started a side hustle?
Whatever your income change is (up or down) you have to report it. The court and your trustee need to know, because it could affect your payment plan.
If your income goes up, the court might expect you to pay more toward your debts. If it drops, you might be able to reduce your payment amount.
But that only works if you actually let someone know.
Trying to hide a new income stream or just keeping it to yourself isn’t worth it. If the court finds out later, it can cause all kinds of issues, from plan modifications to dismissal.
Also Read: Money Received After Filing Chapter 7
#8 Move Out Of State Without Notifying The Court
Moving? That’s fine, but not without telling the court and your trustee first.
When you file Chapter 13, the court keeps track of your location for all kinds of reasons. Mail. Hearings. Trustee communications. If you suddenly disappear or move out of state and no one knows where you went, it throws off the process.
Plus, if you’re moving to a new job or trying to adjust your income, your trustee needs to know that too.
So if you’re planning a big move, just make sure your attorney is in the loop and the proper notifications go out. It’s way easier than dealing with a case complication later.
You cannot move out of the state without approval after filing Chapter 13
#9 File Another Bankruptcy Immediately
Filing Chapter 13 isn’t something you can just do over and over like reapplying for a library card.
If your case gets dismissed or ends without a discharge, there are usually waiting periods (2 years) before you can file again.
And if you try to file another bankruptcy right away, you might not get the same protections like the automatic stay that stops creditors from bugging you.
This isn’t a system you can game. It’s meant to help people, yes, but only if they follow the process.
So, if you’re struggling with your current plan, don’t panic and jump to file again. Talk to your attorney about what options you have.
Bottom Line
Chapter 13 gives you a real shot at getting back on your feet financially. But once you’re in it, you’ve got to stick to the rules.
Don’t skip payments. Don’t borrow or sell stuff without permission. Keep your trustee in the loop. Pay your taxes. Report any income changes. Basically, be honest, stay on top of things, and communicate.
It might feel like a lot, but you’re not doing it alone. You’ve got a team (your attorney, your trustee, the court) that’s there to help.
So lean on them when you need to, but also do your part.