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Chapter 13 Archives

Budgeting and payments to the bankruptcy trustee

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.

Budgeting can help you during a Chapter 13 bankruptcy

When you file a Chapter 13 bankruptcy, you have to make sure that you are ready to live on a budget. The case has a major impact on your finances because you will have to pay the bankruptcy court on a set schedule. Making sure that you can make ends meet during this repayment period can be a challenge, but it isn't impossible.

Chapter 13 bankruptcy could help you become debt-free

Chapter 13 bankruptcy is a wonderful tool for those who have too much of an income to qualify for Chapter 7 liquidation bankruptcy. Chapter 13 bankruptcy is special, because it requires you to make payments for three to five years. You'll make those payments on time each month. If you fail to do so, then your bankruptcy will not complete successfully.

Chapter 13 bankruptcy might not be preventable

The decision to file for Chapter 13 bankruptcy isn't one that is made lightly by filers. It usually takes a lot of debt and the exhaustion of all other options before most people file. Often, there are other circumstances that play a part in the need to use this protection.

Chapter 13 bankruptcy requires years of repayments

Some people associate bankruptcy with the ability to just have debts written off. What they don't realize is that there are different types of bankruptcies. A Chapter 13 bankruptcy is one that a person can file if they have too many exempt assets or an income that sufficient to repay some of their debts.

Can Chapter 13 bankruptcy help resolve your debts?

Chapter 13 bankruptcy is an option if you make too much money to go through a Chapter 7 bankruptcy. This form of bankruptcy allows you to make installment payments over the course of three to five years. During that time, a trustee takes the single payment and pays creditors. At the end of the term, any remaining debts are discharged.

How are debts handled in a Chapter 13 bankruptcy?

Filing a Chapter 13 bankruptcy means that you are going to repay some debts that are included in the case. Within 14 days of filing the petition, you have to file a repayment plan. This outlines how much you are going to pay and how often. These payments, which are typically bi-weekly or monthly, coincide with your pay and are made to the trustee.