A Chapter 13 Bankruptcy in Plainfield, IN can take up to five years from beginning to end, and it requires a radical shift in the way you think about and handle your finances. During Chapter 13, you repay some or all of your debts under a scheduled repayment plan. Living under a budget isn’t always easy, but it’s possible if you follow the tips below.
Prepare your paperwork: The average petition and repayment plan can be 40 pages long, and includes information on your assets, debts, expenses, income and finances. If you omit anything, it can make the later stages of the case more difficult; if you leave out a creditor, you may not be able to discharge that debt. You’ll need to gather your financial records, and once they’re in order, you should be prepared to provide them to your attorney or your trustee.
Create a budget (and stick to it): Chapter 13 Bankruptcy in Plainfield, IN won’t work for you if you don’t make your scheduled payments. Plans are based on the amount of debt to be repaid and your ability to make the payments (your disposable income). That amount is determined by subtracting your expenses from your monthly pay; when assembling your budget, consider cutting discretionary expenses to increase your disposable income.
Keep in touch with trustees, creditors and your attorney: Once your plan is approved, your job is not over. Many things can happen while a bankruptcy is pending, and you shouldn’t disregard communications from attorneys, trustees and creditors. Periodically review the ledgers sent by the trustee’s office, showing any discrepancies to your attorney.
Deal with changed circumstances: Illness, job loss and income changes can derail your budget. Don’t stop making payments, and don’t take out a loan. Instead, consult the bankruptcy court, and ask for:
* A temporary suspension of plan payments
* A plan extension
* Permission to incur more debt (such as a car loan)
* Permission to refinance a mortgage or other debt
If you have changes in your financial situation, you should notify your attorney and your Chapter 13 trustee right away. Some changes mean that Chapter 13 is no longer your best option, and you may need to convert to Chapter 7 or dismiss your case entirely.
Contact The Wright Law Group, LLC to get the best representation for chapter 13 bankruptcy cases in Plainfield, IN and the surrounding areas.