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Your Bank Account In Chapter 13

If you have decided to file for chapter 13 bankruptcy, a court-appointed trustee will review your spending habits for the 90 days prior to filing. Therefore, it is very important to keep track of every purchase you make, to avoid making a fatal mistake. Chapter 13 bankruptcy provides a little more leeway since you still agree to make payments, but it's still best to be careful. Here are some tips for helping you keep track of finances:

  • Hang on to Receipts. Once the decision has been made to file for chapter 13 bankruptcy, start keeping track of all of your receipts for the 90 days leading up to actually filing. The court-appointed trustee will want to be able to review these receipts in case they suspect that you made unnecessary purchases before or while filing for bankruptcy.
  • Obtain Bank Statements. It's necessary to submit copies of bank statements with your petition to file for chapter 13 bankruptcy. Keeping a good eye on your spending habits and your debt is a good way to make sure that the trustee will not be able to contest your eligibility for filing. These statements can back up your purchase receipts in case there is any question about spending or withdrawals. A bankruptcy lawyer will be able to tell you what else will be needed for the petition.

If the court decides that your debt is the result of unnecessary expenditures, the judge may impose sanctions or completely dismiss the case. When filing for chapter 13 bankruptcy to take care of debt, be sure to talk to a Indiana bankruptcy lawyer to stay away from these and other bank account issues.

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