Buy now, pay later services like Afterpay, Klarna, Sezzle, and Affirm have made it easier than ever to split purchases into manageable installments. What started as a way to afford new clothes or electronics has now expanded into everyday essentials—including groceries. But when those small payments start piling up alongside other debts, many people wonder: can you include buy now, pay later debt in bankruptcy?
The answer is YES. Bankruptcy automatically includes all debts, and buy now pay later is a debt. This is true even though it often doesn’t have an interest rate.
What Is Buy Now Pay Later Debt?
Buy now, pay later (BNPL) services are point-of-sale financing options that let you split a purchase into smaller payments, often with no interest if you pay on time. Companies like Afterpay, Klarna, Affirm, and Zip have partnered with grocery stores, gas stations, and retailers to make this option available for everyday purchases.
It sounds convenient—and it is, until life gets in the way. A missed payment can trigger late fees, interest charges, and even collections. Before you know it, what felt like a manageable $25 grocery payment becomes part of a much bigger debt problem.
Unlike traditional credit cards, BNPL services often don’t report to credit bureaus unless you fall behind. That means the debt can grow quietly in the background, making it easy to lose track of what you actually owe across multiple platforms.
At present in October, 2026 only Affirm regularly reports to credit bureaus in our experience. The other buy now pay later loans do not show up on credit reports. We are able to find them, however, by going over your bank statements also.
Why People Use Afterpay for Groceries
You’re not alone if you’ve turned to Afterpay or Klarna to buy groceries. Rising food costs, unexpected expenses, and stagnant wages have pushed more people to rely on financing just to get through the week.
Maybe your paycheck didn’t stretch as far as you needed. Maybe an unexpected car repair wiped out your grocery budget. Or maybe you’ve been juggling bills for so long that buy now, pay later seemed like the only option to feed your family without overdrawing your account.
There’s no shame in that. These services exist because people need them. But when the payments start adding up—and other debts are piling on—it’s time to look at your options.
Buy Now Pay Later Debt Is Unsecured Debt
Here’s what matters most: in bankruptcy, buy now, pay later debt is treated as unsecured debt, just like credit cards, medical bills, and personal loans. That means it can be discharged—wiped out completely—through bankruptcy.
Whether you owe $200 or $2,000 to Afterpay, Klarna, or any other BNPL service, that debt doesn’t get special treatment. It’s not tied to your house, your car, or any other property. It’s simply money you borrowed and haven’t been able to pay back.
In Chapter 7 bankruptcy, most unsecured debts are eliminated entirely. In Chapter 13 bankruptcy, you’d repay a portion of your unsecured debts through a payment plan, and the rest would be forgiven at the end.
Either way, the constant worry about those missed Afterpay payments? It can end.
How Bankruptcy Handles BNPL Debt in Minnesota and North Dakota
Both Minnesota and North Dakota follow federal bankruptcy law, so the process works the same way in both states. When you file bankruptcy, all your debts—including buy now, pay later accounts—get listed in your case.
Once you file, the automatic stay goes into effect immediately. That means Afterpay, Klarna, or any other creditor must stop trying to collect from you. No more emails, no more payment reminders, no more late fees piling up.
If you file Chapter 7, your BNPL debt will typically be discharged within a few months. You won’t owe it anymore, and the company can’t come after you for it.
If you file Chapter 13, the debt gets folded into your repayment plan. You’ll make one monthly payment to the bankruptcy trustee, who distributes it to your creditors according to a court-approved plan. At the end of three to five years, any remaining unsecured debt—including what you owe to buy now, pay later services—is forgiven.
Personal bankruptcy filings are rising across Minnesota, and many of those cases include BNPL debt. You’re not the first person to face this, and you won’t be the last.
What About the Items You Bought?
This is a common question: if bankruptcy wipes out the debt, can they take back what you bought?
In almost every case, the answer is no. Buy now, pay later companies don’t take a security interest in the items you purchase. That $50 in groceries? The company can’t repossess food you’ve already eaten. The clothes, the household items, the gas—none of it can be taken back.
When Filing Bankruptcy Makes Sense
Bankruptcy isn’t about one debt. It’s about getting relief when your total financial picture has become unmanageable.
If you’re only behind on one Afterpay payment and can catch up, bankruptcy probably isn’t necessary. But if you’re dealing with:
- Multiple BNPL accounts you can’t keep up with
- Credit card debt
- Medical bills
- Wage garnishment or the threat of it
- Foreclosure on your home
- Collection calls and lawsuits
Then bankruptcy might be the tool that gives you control again.
Bankruptcy stops the spiral. It gives you a clear path forward. And it lets you use your income for what matters—your family, your home, your future—instead of drowning in payments that never seem to end.
Bankruptcy Isn’t a Failure—It’s a Solution
There’s no judgment here. Using Afterpay to buy groceries doesn’t mean you’ve done something wrong. It means you needed to eat, and you found a way to make it work. But if that short-term solution has turned into long-term stress, it’s okay to ask for help.
Bankruptcy is a legal tool designed to give people a fresh start. It exists because life happens—job loss, medical emergencies, rising costs, unexpected expenses. You’re not alone, and you’re not the first person to sit across from a bankruptcy attorney and explain that things just got out of hand.
What to Do Next
If you’re in Minnesota or North Dakota and struggling with buy now, pay later debt—whether it’s from Afterpay, Klarna, or another service—you have options.
Start by talking to a bankruptcy attorney who understands the local process. Filing bankruptcy in Fargo has specific timelines and court procedures, and an experienced attorney can walk you through what to expect.
At Walker & Walker Law Offices, we’ve spent over 40 years helping people get out from under debt and build a stable future. We’ve seen it all, and we’re here to help—not to judge.
Your consultation is confidential, and we’ll explain your options in plain language. No jargon, no pressure, just honest answers about what bankruptcy can do for you.
You don’t have to keep juggling payments and wondering when it’s all going to fall apart. There’s a way forward, and it starts with one conversation.
Call Walker & Walker Law Offices today to schedule your free consultation and take the first step toward your fresh start.