A chapter 13 bankruptcy filing is a good way to reorganize debt and catch up on missed payments. Many cases are dismissed before discharge because debtors do not make scheduled payments. Read further to learn how to complete a case according to chapter 13 bankruptcy law in New Market.
Fill Out Paperwork Truthfully and Accurately
Regardless of the type of bankruptcy a person files, it is very important for them to be truthful when filling out paperwork. When completing a chapter 13 schedule and petition, the debtor must accurately disclose all their assets, expenses, liabilities and income.
If the person hides assets or misrepresents information, it may lead to a case dismissal or criminal prosecution. When the person fails to disclose all their obligations, those unlisted debts may not be discharged. Furthermore, non-disclosure might cause eligibility issues if creditors file claims that put the case above the chapter 13 threshold.
Propose a Reasonable Repayment Plan
Before a debtor can get a discharge, they must complete all required payments. If they propose an unaffordable repayment plan, they won’t be able to fulfill that obligation. Therefore, they should budget accordingly when submitting a repayment plan proposal. If the person has numerous obligations, they may not have much control over the payment amount. In such a case, they should consult an attorney who focuses on chapter 13 bankruptcy law in New Market.
Stick to a Budget
Making prompt payments is important to the successful completion of chapter 13. Because the payment must be made every month, the debtor must follow a budget. If they make expensive, non-essential purchases, they may have trouble making the required payments.
Notify the Trustee and the Attorney of Changes in Circumstances
Life can change in an instant, even during bankruptcy case. When changes come, a client can ask the court to modify their chapter 13 plan. If a person’s income is reduced during a bankruptcy, they should notify their lawyer right away. An attorney might be able to reduce the monthly payment plan so it’s more affordable.
Provide the Necessary Documentation in a Timely Fashion
In most cases, clients must provide financial information to the court-appointed trustee on a yearly basis, and failing to do so may result in the case’s dismissal. Clients should promptly provide the requested documents throughout the bankruptcy case. Visit us online or call today for more details.
