Three Things You Must Do in Chapter 13
Consumers who want to file bankruptcy have choices. You can elect to file a Chapter 7 bankruptcy that will liquidate your assets and discharge your debts, or you may choose a Chapter 13 filing which involves making regular payments to a bankruptcy trustee. This allows you to retain some of your secured assets such as a home or car rather than turning these things over to creditors. Chapter 13 bankruptcies are also known as “wage earner plans” because, in order to file one, you are required to have some sort of regular income. This allows you to take advantage of the benefits of a Chapter 13 by keeping some of your assets rather than having to liquidate everything. However, if you choose a Chapter 13, there are three things you must do in order to successfully receive a discharge. Oswalt Law Group, bankruptcy attorneys in Phoenix, have compiled a list of “do’s” for those who are considering filing Chapter 13.
- Make regular payments to the trustee. The most important thing you must do is make your payments on time, every time. A single missed payment can jeopardize your entire bankruptcy petition. Because you are no longer paying your bills, it is easier to budget for these payments. If you are having trouble living within your means, seek financial counseling.
- Declare all of your debts and assets. Hiding assets is another quick way to cause a judge to dismiss your case. Further, failure to declare debt not only gives the court the wrong picture of your situation but can result in you missing the opportunity to discharge certain liabilities. Always make a thorough accounting of all your income and your debt and be honest with the court.
- Keep your job. If you lose your job you jeopardize your ability to pay the trustee and receive a discharge. If you are laid off, call your bankruptcy attorney immediately. You may be able to receive some help from the court in staggering your payments.
Following these rules will help you successfully complete the requirements of your Chapter 13 plan. If you are interested in learning more about bankruptcy or think you might be a candidate for a Chapter 13 plan, contact the Oswalt Law Group today to discuss your case. Oswalt Law Group in Phoenix can help you recover from financial disaster through the power of bankruptcy and get you back on track with a fresh financial start.