Chapter 13 basically consolidates your bills into one lump-sum payment each month to make them easier to manage. However, having an active case doesn't stop new expenses from popping up. If you experience a financial emergency while your case is active and need access to cash, here are two things you can do.

Temporarily Suspend Your Payments

Outside of your rent or mortgage, your Chapter 13 payment is likely your largest monthly bill. One way to get some money quickly without incurring additional debt is to ask your trustee to temporarily suspend your plan payments. If the person accepts your reasoning, they will have the court pause the plan so you can miss a payment without consequence.

How long your plan payments can be suspended without penalty depends on where you live. For instance, in California, your plan can be paused up to 3 times before you'll be required to modify it to account for the missed payments. In other states, you can only defer payment one time before the court moves to dismiss your case.

To determine whether this is a viable option for you, connect with your bankruptcy attorney. Your lawyer can let you know how the court handles plan suspensions and help you file the necessary paperwork to obtain the temporary relief you need to take care of your unexpected money issue.

Ask Permission to Take on More Debt

If you need a significant amount of money, another option is to ask the court's permission to take on additional debt. For instance, if your vehicle broke down and you absolutely need one to continue working, you can ask the court if you can take out a loan to either make repairs or buy a new one.

Any new approved debt will be added to your case, and your monthly payments will be adjusted to ensure it's paid off by your plan's end date. Additionally, your plan may be extended for a few more months or years to ensure your payments still fit within your budget.

Be aware, though, that it can take a while for the court to approve or deny your request. If you need money immediately, your attorney can file an emergency petition that may expedite the process as well as help you figure out alternative options if the court denies your application.

For help with your bankruptcy case, contact a local Chapter 13 bankruptcy attorney for advice and assistance.