Chapter 13 Dallas bankruptcy is a very different animal than Chapter 7. Many filers do not consider that a Chapter 13 filing is actually a repayment commitment of three to five years; only after this commitment is satisfied are the remainder of your debts discharged. Yet Chapter 13 is a great option for many faced with the prospect of bankruptcy and unsure what steps to take. Here are a few tips for maintaining your repayment plan under Chapter 13.
Chapter 13 Means Tight Budget
Repayment plans in Chapter 13 are typically based on your income level and ability to make payments; the payment plan will be structured according to your income and assets. This means that if all went according to plan, you would be able to make your payments under the Chapter 13 plan while still going about your life in a normal fashion. In order to do this, however, you must realize that your payments are not optional, and that failure to make these payments has consequences beyond default. So it is very important to ensure that the payment plan is realistic, and to stick to it despite the hardships you may encounter along the way.
Under your bankruptcy repayment plan, you will undoubtedly be faced with a pretty tight budget at times. It can be tempting to let the debt payment slide or try to take out another loan on the side; but these temptations must be resisted. If you are faced with a hardship and unable to make your payments, there are a few options available through the bankruptcy court. You may be able to temporarily suspend payments while you work through the hardship, or you may be able to extend the length of the repayment plan (though not past the five year maximum). The important thing is to keep your wits about you and go through the proper channels.