Can I Use Afterpay During Chapter 13 Bankruptcy? What You Are Not Told
If you are in an active Chapter 13 bankruptcy and wondering, “Can I use Afterpay?”, you are not alone. Buy now, pay later services like Afterpay, Klarna, Affirm, and PayPal Pay Later have become incredibly popular, but using them during Chapter 13 can quietly put your entire case at risk.
Before you make a purchase, here is what you must know to protect your repayment plan, your discharge, and your financial future.
Quick Answer: Using Afterpay in Chapter 13 Is Risky and Often Not Allowed
In most Chapter 13 cases, you should not use Afterpay without court or trustee approval.
Chapter 13 is a court-supervised repayment plan. Every dollar you earn and spend matters. Taking on new debt, even small installment payments through Afterpay, can violate your plan and raise serious concerns with the Chapter 13 trustee.
Why Afterpay Is a Problem in Chapter 13 Bankruptcy
Afterpay is not free money and it is not a debit service.
Legally, Afterpay is:
New consumer credit
A post-petition obligation
A recurring installment debt
Chapter 13 bankruptcy requires you to:
Follow a strict court-approved budget
Make regular plan payments
Obtain permission before incurring new debt
Using Afterpay without approval can be seen as breaking the rules of your bankruptcy case.
Is Afterpay Considered “New Debt” in Chapter 13?
Yes. Absolutely.
Even if:
The purchase is small
There is no interest
Payments are short-term
Afterpay is still new post-petition debt, which generally requires trustee or court approval.
Many debtors are surprised to learn that even a $100 Afterpay purchase can cause issues if discovered.
Will the Chapter 13 Trustee Find Out?
Very often, yes.
Trustees may discover Afterpay usage through:
Bank statements
Updated credit reports
Annual financial reviews
Direct questioning at hearings
Trustees frequently ask:
“Have you incurred any new debt since filing your Chapter 13 case?”
If you used Afterpay, the answer must be disclosed.
What Can Happen If You Used Afterpay Without Permission?
Depending on the circumstances, consequences may include:
Trustee objections
Requests to modify your Chapter 13 plan
Increased plan payments
Delay in confirmation
Motion to dismiss your case in serious situations
Most problems can be fixed, but only if handled correctly and early.
Are There Any Situations Where Afterpay Might Be Allowed?
Possibly, but only with proper guidance.
Limited exceptions may apply if:
The expense was necessary (medical, emergency needs)
The trustee or court approved the debt
Your attorney disclosed it promptly
The payments do not affect plan feasibility
Never assume approval. Always ask first.
Can Afterpay Debt Be Included in My Chapter 13 Plan?
Afterpay debt from before filing is usually included in your Chapter 13 case as unsecured debt.
Afterpay used after filing is not automatically included and may require special approval or repayment outside the plan.
This distinction is critical and often misunderstood.
Why Bankruptcy Courts Take Buy Now, Pay Later So Seriously
Buy now, pay later services:
Bypass traditional credit checks
Encourage impulse spending
Can quickly add multiple installment obligations
Trustees view them as a growing problem that undermines the integrity of Chapter 13 repayment plans.
What Should I Do Before Using Afterpay in Chapter 13?
Before using Afterpay or any similar service:
Speak with your bankruptcy attorney
Review your confirmed or proposed plan
Obtain trustee or court approval if required
Document the necessity of the expense
Doing this the right way can save you months of stress and thousands of dollars.
The Bottom Line: Should You Use Afterpay During Chapter 13?
In most cases, no.
Using Afterpay during Chapter 13 without guidance can:
Jeopardize your case
Delay your discharge
Increase your payments
Put you at risk of dismissal
The safest move is to get legal advice before using any buy now, pay later service.
Talk to a Bankruptcy Attorney Before It Becomes a Problem
Every Chapter 13 case is different. What is allowed in one case may be prohibited in another. A short conversation with an experienced bankruptcy attorney can help you:
Avoid trustee objections
Protect your repayment plan
Stay on track toward discharge
If you are in Chapter 13 and unsure about Afterpay, Klarna, or any new credit, now is the time to ask. Getting advice early is far easier than fixing a problem later.