Founding Attorney
When you file for bankruptcy under Chapter 13, you must submit a proposed Chapter 13 bankruptcy plan to the court. All your creditors and the Chapter 13 trustee receive copies of the plan. If anyone objects to the plan, your Massachusetts bankruptcy attorney works to resolve the objections. Once all objections are resolved, the court issues an order confirming the plan.
Essential Things to Remember When You Are In Chapter 13 in Massachusetts
Chapter 13 bankruptcy is a three to five-year process. After finalizing your Chapter 13 bankruptcy plan, you must complete the plan to discharge your debts. It requires a commitment, but it is worth it to be out of debt. Things that can help you stay on track to complete your Chapter 13 plan include:
Pay All Chapter 13 Plan Payments on Time
Many debtors have their Chapter 13 plan payments garnished from their wages. In many ways, wage garnishment improves your chances of completing the bankruptcy case. If you pay the payments directly to the trustee or change jobs, ensure your payments are made on time and in full each month.
Notify Your Attorney Immediately of Changes
If any life events could impact your Chapter 13 case, notify your attorney immediately. Events include, but are not limited to:
- Job loss
- Major illness or injury
- Pending lawsuits
- Divorces
- Adoption or birth of a child
- Family death
- Inheritances, gifts, or insurance proceeds
- Salary changes
- Name change
- Moving
Some events may require a modification of your Chapter 13 plan. Always talk to your lawyer to determine how the change impacts your bankruptcy.
Make All Mortgage Payments on Time
Keep mortgage payments current. If you fall behind on your mortgage payments, the company can file a motion to remove the loan from the automatic bankruptcy stay. If the court grants the motion, the company can foreclose on your home.
Keep Insurance Premiums Current
You are required to maintain insurance on your home, vehicle, and other property. Renew and pay insurance premiums on time to avoid insurance lapses.
Pay Domestic Support Payments on Time
Your bankruptcy plan requires you to pay court-ordered alimony and child support payments. Failing to do so could be a reason to dismiss your bankruptcy case.
Fill All Required Federal and State Tax Returns
You are also required to file tax returns on time. If you cannot file your tax returns on time, contact your attorney immediately to discuss what to do.
Do Not Sell Your Property Without Bankruptcy Approval
You cannot sell or transfer assets during your Chapter 13 case without court approval. Therefore, if you want to trade in a car to purchase a new car, contact your lawyer. You must file a motion with the court before transferring the vehicle.
Do Not Incur Debt Without Bankruptcy Approval
You also cannot incur debt without bankruptcy approval. If you want to obtain a loan to purchase a home, you must file a motion to incur debt. Additionally, you are purchasing a new asset that could impact the amount of your plan payment. Call your attorney before signing any forms.
Schedule a Free Consultation With Our Massachusetts Bankruptcy Attorneys
Are you struggling to pay debts you cannot afford? Call Logan A. Weinkauf, PC, to schedule a free consultation with an experienced Massachusetts bankruptcy attorney. Filing a Chapter 7 or Chapter 13 bankruptcy can give you the fresh start you need to recover from a financial crisis.