Are you in severe debt crisis and need to file Chapter 13 bankruptcy? Well, that’s sad. However, if you stay compliant to the respective regulations and follow a controlled life, you will be able to overcome the current testing phase. The post below offers a brief on how to handle bankruptcy effectively.
Contact a bankruptcy lawyer
The first thing to do here is to consult a seasoned and reputed bankruptcy lawyer san Diego. Your chosen attorney will help you with all the legal steps and paperwork for an effective bankruptcy petition and proceeding.
Follow a reasonably tight budget
When you opt for Chapter 13, you will have to pay your debts, either in part or in full, based on your specific conditions. It would require you to follow a reasonably strict budget which will be primarily focused on effective debt repayments. Thus, you will have to compromise on any kind of luxury expense for the time being. If possible try to find another source of income to support your budget and debt payments.
Prepare for court appearances
You will have to attend at least 2 court appearances to gain approval for Chapter 13. In the first meeting, you will have to sit with your creditors. A trustee will be appointed who will check your paperwork, identity and may ask some financial questions. Your creditors too may have questions for you. Your lawyer will advice you on what kind of verifications and questions you may have to face here. So, you should prepare yourself accordingly.
Tips for emergency crisis
What if you suffer a job loss in the meantime that may render you unable to pay off the debts? Well, in that case, you should always inform your lawyer. He may plead to the court to suspend or modify the payments for a temporary time-period.