Like many people, you may be having financial difficulties in terms of paying your bills on time. However, if you feel as if your financial situation is spiraling out of control and you are facing such possibilities as the foreclosure of your home, Chapter 13 bankruptcy may be an option you should consider. Helpful in many ways, it can be the first step in your journey to financial recovery. If you choose to file Chapter 13, here are four tips to always keep in mind.
Gather Your Paperwork
As you prepare to file for Chapter 13 bankruptcy, begin by gathering together all the necessary paperwork. This usually includes your bank statements, pay stubs, tax returns, and any other relevant financial documents. When filing Chapter 13, remember that the documents filed with the court are around 50 pages long and must be filled out completely and very accurately. Thus, don’t try to lie your way through bankruptcy, and always pay attention to the details.
Have Your Support Team Ready
One of the smartest things you can do when filing Chapter 13 is to assemble a reliable, experienced, and knowledgeable support team who can assist you each step of the way. First, you should hire a financial advisor who can make recommendations on budgeting and other matters. Also, hire an attorney such as Ricardo B. Casas who specializes in complex Chapter 13 bankruptcy cases. By working with these professionals, you can get answers to your questions and make well-informed decisions.
Pay Your Bills on Time
Even though you’ve declared bankruptcy, this does not mean you have a free pass to not pay your bills on time. In fact, it will be more important than ever that you do just that regarding your car payment, house payment, taxes, and other financial obligations. If you fail to do so after filing bankruptcy, this can negate many of its benefits, meaning your home could once again be subject to foreclosure and your car could be repossessed.
Don’t Ignore Notifications
Finally, don’t ignore any notifications you receive as your bankruptcy case progresses. Whether it’s court filings, trustee reports, or letters from your creditors, always stay on top of your notifications and speak to your attorney if there is anything you don’t understand or you believe is a mistake.
Chapter 13 bankruptcy plans are designed to be followed over a period of three to five years. Since many details will pop up along the way, always know what is required of you in regard to your bankruptcy plan. By working with your attorney and sticking to the plan, you can emerge from bankruptcy in much better financial shape.
Author information: Lizzie Weakley is a freelance writer from Columbus, Ohio. In her free time, she enjoys the outdoors and walks in the park with her husky, Snowball.
