Tips for Managing Your Chapter 13 Repayment Plan

If you file for Chapter 13 Milwaukee bankruptcy, you will commit to a payment plan lasting three to five years, under which you will repay any missed payments on secured debts and a portion of your unsecured debts. Though this plan can be challenging, it will free you from your debts and give you a fresh start. You’ll no longer be in the red. Here are a few ways you can make the plan go as smoothly as possible:

Get used to living on a tight budget.

Payment plans take all of your extra income after you pay necessary expenses like rent, clothing, and food. You won’t have any extra money left over for fun or frivolous things. Unfortunately, you’ll need to simply get used to this; the court wants you to repay as much of your debt as possible, Which means using all extra income for repayment purposes.

Do not incur new debt.

You should not incur new debt without speaking to your bankruptcy trustee first. The point of a bankruptcy is to allow you a fresh start and force you to live within your means, not to let you fall back into old habits of financial irresponsibility.

If your financial situation changes, tell your bankruptcy trustee.

If you lose your job or experience another significant change in your financial life, tell your trustee as soon as possible. He may be able to modify your payment plan or obtain a hardship discharge for you.

Don’t stop making payments.

No matter your financial situation, never stop making your payments. This could lead to a dismissal of your petition, which will leave you responsible for paying all of your debt, not just the portion agreed upon in your payment plan.

Burr Law Office can help you decide if Chapter 13 Milwaukee bankruptcy lawyers is right for you. Though it is not an easy process, it may be a way to deal with your debt and move on with life. To learn more, call (262) 827-0375 to schedule a free consultation with our team.