Chapter 13 bankruptcy is an ideal option for those who are struggling with debt but wish to keep their assets. With this type of bankruptcy, you make monthly payments to a trustee, who then repays your debts on your behalf. Here are some useful tips for a successful Chapter 13 bankruptcy.
Take Your Time With the Paperwork
When you file for Chapter 13 bankruptcy, you will have to complete pages and pages of paperwork. While this may seem tedious, it is important to fill out this paperwork as accurately as possible. If you make even one error, it could delay the entire process. If you have any questions about the paperwork, do not hesitate to ask your Chapter 13 bankruptcy lawyer.
Create a Budget
In order to make your debt repayments on time, you may need to tighten your budget for a while. Look at your monthly expenses and see what you can cut out. For example, if you eat out at restaurants quite frequently, you should think about cooking at home from now on.
Communicate Regularly With Your Lawyer
Communication with your Chapter 13 lawyer should not stop once the court process is complete. If your income or expenses change at any time, you should inform your lawyer right away. For instance, if you lose your job, you should let your lawyer know. This way, they can help you adjust your repayment plan to better accommodate your new situation.
Make Your Payments On Time
One thing that can mess up your Chapter 13 bankruptcy is being late on payments. Find out what day of the month your payments are due and pay them on time every time. If you know you will be late making your payment one month, you should at least let your lawyer know ahead of time.
Avoid Creating New Debt
To pay off your debt in a timely manner, it is crucial to avoid racking up new debt. However, if creating new debt is unavoidable, you should your lawyer know immediately so that they can contact the trustee. If you do not let anyone know that you have taken on new debt, it could jeopardize your case.
If you follow these helpful tips, the Chapter 13 bankruptcy process should go much smoother. If you have additional questions about your case, do not hesitate to reach out to a Chapter 13 bankruptcy lawyer in your area.