How to Successfully get through a Chapter 13 Bankruptcy
Bankruptcy is never an easy thing to go through. While you do have some choices to how you want to get through a bankruptcy it is still going to be hard and require a lot of sacrifices. If you have chosen to go through with a Chapter 13 Bankruptcy make sure you talk with the attorneys at Robinson, Seiler, Anderson & Fife, LC. in Provo to walk you through the process and what will be expected of you. We have provided some tips for you to try to help you to successfully get through a Chapter 13 Bankruptcy.
Create a Strict Budget
Your Chapter 13 bankruptcy won’t work if you can’t make your plan payments. It’s based on a two-part calculation, the amount of debt you must repay in the plan, and your income, or, ability to pay your debt. In Chapter 13, how much you’ll pay will depend on your disposable income. It’s calculated by deducting allowed monthly personal and household expenses from your monthly take-home income. That is why it is so important to take the time to create a strict budget and to stick to it.
You’ll have a minimum of two court appearances before your Chapter 13 plan is approved. The first is the 341 meeting of creditors that all filers must attend. The trustee appointed to your case will verify your identity, ask you questions about your paperwork, and allow any creditors in attendance to ask financial questions. At the confirmation hearing, the judge will decide whether your plan is feasible. Your creditors will have an opportunity to object to the plan beforehand. Such objections are often resolved before the confirmation hearing.
Be Proactive when Circumstances Change
Life happens. We never plan for someone to lose their job, fall ill, or have a family crises. Instead of not making your payments you have some options. Talking with the bankruptcy attorneys at Robinson, Seiler & Anderson in Provo can help you to decide what is best for you and your situation. Your options include:
- Temporarily suspending or modifying your plan payments
- Extending the length of your plan (but you can’t exceed the 60-month time limit)
- Granting you permission to incur new debt, such as a replacement car loan, or
- Allowing you to refinance an existing, pre-petition secured debt, like a mortgage.
Call our office today to learn more about Chapter 13 bankruptcy and what you can do today to better your situation.