Building a Budget After Bankruptcy
When you file for bankruptcy, your attorney will help you create a budget which will be filed with court. This is true whether you are filing under Chapter 7 or Chapter 13 and regardless of what you choose to do. This budget is used for several purposes, including determining how much money you will need to pay in a Chapter 13 bankruptcy and demonstrating eligibility for a Chapter 7 bankruptcy when viewed with projected income.
The Chapter 13 budget is important because it shows the trustee’s office as well as the court what a realistic plan payment looks like. A Chapter 13 payment should be heavily influenced by your real and specific financial situation. Building a budget can be a very helpful and crucial step to pursuing this process. Your attorney will help you create a budget based on the expenses that you incur. This budget is then tailored to meet your needs while pursuing Chapter 13 bankruptcy.
Apart from the direct impact the budget has on the construction of the bankruptcy filing, it is also a great tool for creating perspective. The first thing that comes to mind when facing financial difficulties is to reduce spending. Dealing with debt can lead us to reduce our spending on many of the essential goods and services that we use every day. This is not a compromise that anyone should have to make.
When constructing a household budget, it is very common to see the tangible effects of the challenges that come with dealing with overwhelming debt. This is because you can compare the impact on your household expenses prior to bankruptcy. One of the most immediate benefits of bankruptcy is that you can now reallocate your finances to meet your needs. Creditors will often push us to pay constantly more, ignoring the impact on our lives, budgets or well-being. By declaring bankruptcy, you can end this cycle forever and declare that your budget is now there to serve you.
A good budget should be structured to meet your family’s requirements and designed to work for you. We will tailor your bankruptcy budget to meet those needs.
Call Now For A Free Strategy Session With A MN Bankruptcy Lawyer
When the time is right, or when you are ready, please don’t hesitate to contact Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com.
