chapter 13 bankruptcy is a process that requires you to think differently about your finances.
The proceeding, which lasts three to five years, is one where you pay
back debts under a repayment plan. Living with the finance plan for several
years can be challenging, but by choosing to follow the tips shared here,
you can be successful.
Chapter 13 Petition
When filing your paperwork for
Chapter 13 bankruptcy, being honest is crucial. Disclose all of your assets, income, expenses,
and liabilities to the best of your ability. Failure to do so can result
in your case being dismissed or criminal prosecution.
Chapter 13 Payment Plan
Only propose a plan you can afford. In order to do this successfully, you
should take an honest look at your finances and create a budget that works for you.
It can be a relief to have your plan confirmed, but it doesn’t mean
your case is over. Things can happen during the years your bankruptcy
is pending so you shouldn’t ignore calls or mail from creditors,
your attorney, or your Chapter 13 trustee.
It is also important keep your attorney up to date with any changes in
your finances. You may discover that Chapter 13 isn’t working for
you and you want to dismiss your case. Another option is converting your
case to Chapter 7, which can also be helpful.
Even with the best intentions, situations can arise which are beyond your
control. Job loss, income changes, illness, or various budget changes
are all possibilities. Instead of trying to fix it by taking out a new
loan or stopping your payments, consider how the court can help:
- Modify or temporarily suspend plan payments
- Extend the plan’s length
- Grant permission to take on a new debt
- Allow the refinancing of a pre-petition secured, such as a mortgage
In many cases, choosing Chapter 13 bankruptcy is a smart option. As you
consider your choices, please
contact us and let us know how we can help.