Filing for a Chapter 13 bankruptcy means that you are trying to get back on your feet financially. In order to have the case discharged, you have to make payments to the bankruptcy court. This means that you are likely going to have to cut your expenses down to the bare minimum to make things work.
When you file for this type of bankruptcy, the court uses a formula to determine what payments you will make to the bankruptcy court. It is up to you to adjust your monthly expenses so that you can pay for life’s necessities. You might have to cut way back on things to make ends meet.
The only option that you have that doesn’t involve cutting expenses is to not file for Chapter 13 bankruptcy. The court isn’t likely going to change the amount of the payments you are expected to pay. You will have to review everything that you are spending money on and determine what can be changed to make more room.
You are going to have to sit down and create a budget based on what you’re going to have left after your payments to the trustee. Every expense you have will need to be included. You are going to have to follow the budget precisely.
Even though living on a budget might be a challenge, it can set you up for success once the bankruptcy is discharged. You will know how to handle your money and might be able to start rebuilding your credit. This can help you to enjoy financial freedom in the future.