Postpetition Borrowing by a Consumer Debtor in Chapter 13

Postpetition Borrowing by a Consumer Debtor in Chapter 13 – Part 1 of 2

By Judge Michael A. Fagone & Career Law Clerk Ciera S. Dye

Although our Nation’s bankruptcy laws are uniform, chapter 13 practice in our Nation’s bankruptcy courts varies to a significant extent in the different judicial districts. One example of this variation is the treatment of postpetition borrowing by a consumer debtor in chapter 13.i

Neither the Bankruptcy Code nor the Federal Rules of Bankruptcy Procedure provide clear guidance about whether a consumer debtor must obtain court or trustee approval before incurring postpetition debt. The Code and the Rules are also silent . . .

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