Tips For Surviving A Chapter 13 Bankruptcy
Many people find themselves struggling to shoulder their financial burdens. If you are having a difficult time repaying your creditors, then bankruptcy might be an option that you can use to help you get out from under your debt. Chapter 13 bankruptcies allow filers to work with their creditors to create a repayment plan that will not continue to put undue financial stress on the filer.
Here are three tips that you can keep in mind to help you survive a Chapter 13 bankruptcy in the future.
1. Complete your paperwork honestly to achieve the best results.
Although it can be challenging to take an honest look at your financial situation, it is critical that you are honest when filling out your Chapter 13 bankruptcy paperwork. The information that you provide through your paperwork will be used to create a structured repayment plan that will allow you to put an end to collection actions and repay your debts without falling further behind.
If you don't accurately account for your debts, income, and assets, you may find that your repayment plan isn't effective. Be sure that you work closely with your bankruptcy attorney to include honest and accurate information on all paperwork as you file for bankruptcy.
2. Make sure you can adhere to your payment plan.
In order for your bankruptcy to remain in effect, you need to make monthly payments according to the structured repayment plan outlined by the trustee in your case. You make a single payment to the trustee, who then divides the payment among your creditors according to the terms of your bankruptcy.
If you fail to make a monthly payment, you could find yourself facing fines and collection actions once again. Work with your attorney to negotiate a payment that will be manageable within your budget as you file a Chapter 13 bankruptcy.
3. Keep your finances organized.
Chapter 13 bankruptcies can remain open for many years, since it can take time to repay your creditors in full. Throughout the duration of your case you will be required to submit important financial documentation to the trustee.
This documentation can include bank statements, tax returns, and other evidence of your financial standing. Take the time to keep your finances organized so that you will be able to comply with any requests your attorney receives for documentation in the future.
Filing for Chapter 13 bankruptcy can help you better manage your debt. Ensure that you are honest when filing, agree to a manageable payment, and stay organized to ensure your bankruptcy is successful.