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Making a Budget for Chapter 13

Making a Budget for Chapter 13

Making a budget and sticking to it is hard to do. With the impulse shopping we all do today, our budgeting quickly changes when we take a glance at our bank account. However, straying from a budget for a long period of time can result in someday filing for Chapter 13 bankruptcy.

Not following a budget after chapter 13 bankruptcy will be detrimental to your future. The ability to keep your house and possessions will be threatened. If one budgets before filing for Chapter 13, it will show that a person is taking control of their finances and taking the steps needed to emerge successfully from bankruptcy.

Developing a Budget

Writing down goals in any of your life will raise the chance of achievement. It is important to have your plan written down. Keeping track of how well you follow the plan will provide you with a lot of information on where your money is going.

Chapter 13 recipients are required to have a stable income. Knowing how much money you are expecting will be the basis for financial decisions. Also deciding what your priorities are can relieve some of the questions about what to do with money.

If it’s possible, while you are paying off debts, saving should be a part of a bankruptcy budget. Unexpected, expensive events can ruin an entire repayment plan. Preparation for these unforeseen circumstances can prevent major financial consequences. Credit counseling will also be beneficial when deciding a budget that is best for you.