Postpetition

How it works

The filing date draws a line through your finances. The bankruptcy estate is your legal and equitable interests in property as of the start of the case, and in Chapter 7 what you earn from work done after filing is not part of it. Property you become entitled to within 180 days after filing by inheritance, a property settlement or divorce decree, or as a life insurance beneficiary is pulled into the estate. 1 2

Chapter 13 works differently. Property you acquire and earnings from work done after the case begins are part of the estate until the case is closed, dismissed or converted. 3

Postpetition debts are generally not wiped out in Chapter 7, because the discharge covers debts that arose before the order for relief. In Chapter 13, a creditor can file a claim for taxes that come due during the case, or for a consumer debt for property or services you need to carry out the plan. That consumer claim is disallowed if the creditor knew or should have known that getting the trustee's approval first was practicable and it was not obtained. 4 5

Homeowners in Chapter 13 may get a Notice of Postpetition Mortgage Fees, Expenses, and Charges. When the plan pays a mortgage on your home, the lender must itemize fees and charges incurred after filing within 180 days after they are incurred, and the court can decide on a motion whether you owe them. 6