When you file a Chapter 13 bankruptcy case, you will be in for the long haul. A Chapter 13 case typically takes five years for the average person to complete, and you will not receive all the relief you need until you complete the plan. While five years is a long time, it is not forever. If you handle your case correctly, you can get through it without too much trouble. Here are some tips to help you get through your bankruptcy plan a little easier.
Make Your Payments on Time
One key component of a Chapter 13 plan is a repayment plan that your attorney sets up with the bankruptcy trustee. You will know the amount you must pay and the frequency of the payments, and you must follow the plan. If you must pay weekly, make sure you send the check weekly. If it is monthly, make sure you pay monthly.
Update Your Debts to the Trustee
Throughout your plan, you might encounter times when you have unexpected expenses arise. If you cannot pay the debt in full when you get it, you can include it with your Chapter 13 plan. You must notify the trustee anytime this occurs, though, as the trustee will need to update your plan to accommodate this new debt.
Review the Trustee's Statements
You will likely receive statements from the trustee every month, and these statements show the money they collected from you and the creditors they paid. You should verify these statements when you receive them to ensure that the trustee used the money correctly. Your Chapter 13 plan will state how the trustee must use the money, and you can verify that they followed your plan by reading through the statements.
Stick to a Budget
Going through a Chapter 13 repayment plan is easier if you have a budget that you follow. Living on a budget can help you appropriate your income correctly and in a way that helps you have enough money to cover your expenses.
Refer Creditors to the Trustee
If creditors call you during your Chapter 13 plan, you can refer them to the trustee or your attorney. Creditors cannot call you or notify you in other ways while you are involved in a Chapter 13 bankruptcy case.
Following these tips might help you get through your plan without any major bumps. If you have questions about bankruptcy or want to file a case, talk to a local bankruptcy attorney today.