Surviving Chapter 13 Bankruptcy

December 28, 2022

How to Survive Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy is a complicated process, but it can be a lifesaver if you are in financial distress. It allows you to repay your debts while still keeping your assets. But surviving Chapter 13 bankruptcy requires some commitment, dedication, and planning. Here are five tips to make the process easier.

1. Stick to Your Repayment Plan

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Chapter 13 bankruptcy establishes a repayment plan. The repayment plan will pay back the total debt in three to five years. You must stick closely to this plan and pay on time each month. Any missed payments could lead to the dismissal of your case or even more debt.  This requires planning and discipline.  Make it your first goal to pay that payment on time.

2. Make Budget Cuts

Budget cuts before filing for bankruptcy can help you manage your finances. Cutting your budget will help you have enough money left over after paying your creditors each month. Cut out unnecessary expenses like eating out or subscription services.

3. Stay Away from Credit Cards

Credit cards should be avoided at all costs in Chapter 13 bankruptcy. Credit cards may increase the amount of debt that needs to be repaid each month. They could even cause the dismissal of your case. Tell your attorney if you cannot make the Chapter 13 payment monthly. Your attorney can offer solutions to help.

4. Build an Emergency Fund

Surviving Chapter 13 Bankruptcy Emergency FundAn emergency fund is essential in Chapter 13 bankruptcy as it will provide financial security if something unexpected happens. Examples of unforeseen circumstances include illness or job loss. An emergency fund prevents you from missing a Chapter 13 bankruptcy monthly payment. Try slowly setting aside at least $1000-2000 dollars into savings over time. Avoid using it unless necessary during this period so that it remains available if needed. Contact your attorney if you encounter unforeseen circumstances and cannot make a Chapter 13 repayment. Your attorney can provide you with options to help.

5. Seek Professional Help

Navigating Chapter 13 Bankruptcy can be daunting and confusing. Seeking professional help from an attorney specializing in this area can be incredibly beneficial. A bankruptcy attorney ensures that the entire process goes smoothly. An attorney eliminates a lot of financial stress along the way. An attorney will file the paperwork for you. They will help you understand all legal terms. They will even represent your best interests in court proceedings related to your case.

Deciding to file Chapter 13 Bankruptcy is often tricky, but following these five tips can make the process easier.  Surviving Chapter 13 Bankruptcy can be rewarding because it leads to a fresh financial start.  Remember, the most important thing is to make monthly payments.   If something unexpected happens, contact your Chapter 13 Bankruptcy attorney.

Looking for more information on Chapter 13 bankruptcy?  Find out more here.

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