One of the most common types of individual bankruptcy is chapter 13. This type of bankruptcy is relegated to wealthier individuals and, instead of wiping out significant amounts of debt, chapter 13 is a lot more like a repayment program. While some amount of debt may be forgiven, the majority of the debt will be repaid via a three- to five-year plan. Fortunately, speaking with a chapter 13 bankruptcy lawyer in Bowie, MD can result in a few helpful tips for surviving this type of bankruptcy.
Get Used to a Budget
Before the payment plan kicks in, it will be important for a person or couple to look at their finances and identify ways to save money. Not only is this helpful in finding extra cash, but it can help a person be more comfortable with a budget. Not following a budget may have been one of the reasons a person or couple had to speak with a chapter 13 bankruptcy lawyer in Bowie, MD in the first place. Setting a budget and following it will help.
Have Trustee Payments Automatically Deducted from a Pay Check
Once the payment plan is set, if the filer works for a company that allows deductions from their paycheck, it’s best to set up an automatic withdrawal. Having this payment automatically withdrawn and transferred to the bankruptcy trustee will do two things:
Avoid Missed Payments and Learning to Live Without the Money
First, it will help ensure no payments are missed. Secondly, it will help a person acclimate to paying the debt. With it being out of sight and out of mind, a person or couple may be able to restructure their finances and, hopefully, they can start to not miss the money they never actually see.
Chapter 13 can be difficult to go through, but following the advice of your chapter 13 bankruptcy lawyer in Bowie, MD may be exactly what you need to do to become financially secure. The advice offered by a bankruptcy attorney from Law-margulies.com is invaluable and should be taken. It may be the best way to help you through the bankruptcy process, and this advice may make all the difference in you making the same mistakes again or changing the financial trajectory of your life for good.
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