Completing a Chapter 13: What You Need to Know
If you’re considering filing for Chapter 13 bankruptcy, you’re probably feeling a mix of emotions: worry about your financial future, relief at finding a way to manage your debts, or curiosity about the next steps. You may be wondering what it will take to complete a Chapter 13 successfully.
As a bankruptcy lawyer, I’m here to help guide you through each stage of your Chapter 13 repayment plan. In fact, our firm has helped thousands of people to navigate the system and get out of debt for good.
What is a Chapter 13 Bankruptcy?
Chapter 13 bankruptcy, also called a wage earner’s plan, allows you to pay off all or part of your debts through a repayment plan. Think of it like a financial rehab program that helps you reorganize your debts and make manageable payments over three to five years.
With the help of a Chapter 13, you can include assets like your home and car in the bankruptcy, along with unsecured debts like credit card debt and medical bills. It stops foreclosure and repossession, ends wage garnishment, and puts a stop to creditor harassment.
And it’s all set up according to your ability to pay. The courts want you to succeed in getting through the process. So here are some tips for how to do it well.
Tips for Completing Your Plan Successfully
1. Understand Your Repayment Plan
The first step to success is fully understanding your repayment plan. Your plan outlines how much you need to pay each month and for how long. We will work together to create a plan that’s realistic based on your income and necessary living expenses. It’s important that the plan is affordable for you, because sticking to it is crucial to a successful Chapter 13.
2. Keep a Tight Budget
You have to manage your finances wisely during this period. You’ll need to be on top of your spending and keep a tight budget. This means tracking what comes in and making sure you’re not spending money on things that aren’t essential. Consider a budgeting app to help make this easier.
Remember, the goal is to stick to the plan and get back on stable financial ground. But this step can also help anyone develop good long-term habits.
3. Stay in Communication with Your Lawyer
If you’re facing any difficulties, such as an unexpected financial emergency or a change in income, you need to let your lawyer know immediately. They might be able to adjust your repayment plan or find other solutions to keep you on track.
Always keep the lines of communication open with your lawyer. This starts at the very beginning: some lawyers charge extra if problems come up. So you want to choose an attorney who will stand by you every step of the way and won’t charge you for simple things like phone calls. We’re committed to you until your case ends, no hidden fees attached.
4. Make Your Payments on Time
This might seem obvious, but it’s worth emphasizing because it’s so important: make your payments on time.
Late payments can lead to serious problems, including the dismissal of your bankruptcy case. Setting up automatic payments can be a great way to ensure you never miss a due date.
5. Avoid Incurring New Debt
While under a Chapter 13 repayment plan, you should avoid taking on new debt without consulting your bankruptcy lawyer. New debt could complicate your case and impact your ability to make plan payments. Always discuss any financial decisions that could affect your bankruptcy with your attorney first.
6. Attend All Required Court Appearances and Meetings
Part of the process includes attending a court appearance and meeting with your creditors. This may sound stressful, but we help make it easy for you. Being present and engaged shows your commitment to fulfilling the terms of your bankruptcy and working towards a debt-free future.
You’re Not Alone: Legal Help to Complete a Chapter 13
Fortunately, you don’t have to go through this alone. Our team of Memphis bankruptcy lawyers is here to assist our clients every step of the way – and we can help you, too.
Successfully completing a Chapter 13 repayment plan can be challenging, but with dedication and the right guidance, you can do it. And once you’ve completed your plan, you’ll be released from the debts covered by the plan, and you can start anew.
Are you ready to take control of your financial future? Contact me today, and let’s discuss how we can set up a successful Chapter 13 repayment plan tailored to your situation. The conversation is completely free, no strings attached. Let’s work together to get you back on the path to financial stability.
Just contact me today online or call us at 901-327-2100 to get started.