If you have recently filed for Chapter 13 bankruptcy or if you are considering filing, you should be proactive when it comes to understanding the terms of the bankruptcy chapter. Unlike Chapter 7 bankruptcy, which primarily involves the liquidation of assets, Chapter 13 bankruptcy is concerned with reorganizing your debts so that it becomes manageable to repay them over time.
Therefore, understanding the repayment plan in detail its paramount to being successful in your bankruptcy in the long haul. You should have a good comprehension of the process for modifying the schedule, as well as know the negative consequences of missing scheduled repayments. The following are some tips for making your repayment plan work for you.
Remember that repayments should be your first priority
It's likely that you will be scheduled to make repayments either biweekly or monthly for the next three to five years under Chapter 13 bankruptcy. Therefore, it is important that you get into the habit of making the payments ahead of schedule. Missing your scheduled repayments even once can severely complicate your bankruptcy case. For this reason, your repayments should be your first priority every time you get paid.
Look into the benefits of autopay or payroll deduction
Since making repayments is so important, you may want to set up autopay or even consider payroll deductions. By setting these up, you will be able to meet repayments automatically.
If you are looking into the benefits of Chapter 13 bankruptcy or have concerns about meeting repayments, it is important that you consider all bankruptcy options available to you and that you understand the law in full.