Chapter 13 Bankruptcy Tips
As a Chapter 13 bankruptcy lawyer, we know that filing for bankruptcy can be one of the most difficult things a person can do. However, once you have gone through the process, you will have a fresh financial start, and that is the ultimate goal of the process. With this fresh financial start, it is important to take control of your finances and begin to build a positive credit rating again.
The Complexity of Chapter 13
There are many complexities we will discuss in regard to your Chapter 13 bankruptcy filing. As your attorney representing you in the filing of your bankruptcy, we know that is important, and often extremely complex, for people to get ahead after their bankruptcy. There are many decisions to make, including some of the same decisions that may have led you down the road to bankruptcy in the first place.
Here are a few suggestions to help you get ahead after yours is complete
The first and most critical mistake that too many people make after filing a Chapter 13 bankruptcy is to believe that simply because their debt has been removed, their financial problems are simply going to disappear. This is simply not the case. As your Chapter 13 bankruptcy lawyer, we are the first to tell you that it is important to use this fresh start to help build a future income that is more than sufficient to cover your expenses.
Budgeting
One of the best things you can do is to create a monthly budget and then discipline yourself to live within the parameters of this budget. There are many people who simply do not have this capacity, and they often find themselves falling back into debt and down the same road that led to the bankruptcy in the first place.
A failure to budget and to plan can lead you once again to a Chapter 13 bankruptcy lawyer but there are time restrictions for when you can file again so you cannot use this option on a regular basis. If you feel like you’re one of those people who cannot budget appropriately, then you should consider having a financial adviser. An adviser can help guide your future financial decisions.
Bankruptcy Lawyer
As a Chapter 13 bankruptcy lawyer, we know that the straw that often breaks the camel’s back comes in the form of some kind of major life event. This can be serious medical problems, the loss of a job, a divorce, or a death in the family. Regardless of what the last straw was, if you begin to save money now, you can prepare an emergency fund. Even if you only save $100 a month, that can often be enough to prevent the snowball effect that occurs when things are not paid on time, late fees are added, and then you cannot afford the next bill, and so on.
Also, you should consider creating a contingency plan. You can follow this plan in the event that you have a catastrophic situation in your life, where your resources will be tapped to the limit. For example, if you were to ever lose your job again, what could you do to immediately cut expenses? This type of forward thinking can protect you in the long-run.
NOTE: This is for informational purposes only and does not constitute legal advice.