How To Live On A Chapter 13 Budget

All of our clients who have filed for chapter 13 budget must live on that budget for between 3 and 5 years. A budget has to be created that is accurate and will allow you to make your regular payments and a chapter 13 plan payment. I sometimes suggest to clients that they take out the cash for food and other basic expenses and only use that cash per month, once the cash is gone you cannot spend any more money, otherwise you will be over budget, and will not be able to afford your chapter 13 plan payment. In some cases this type of budgeting will be something that has never been done before by our clients, but it is important in order to end up debt free at the end of the bankruptcy plan. Once you are in your bankruptcy plan you must stay current on your plan payments, or else the trustee can send a request that your case be dismissed. If your case is dismissed you need to start over again with payments.