Chapter 13 Bankruptcy: 3 Ways To Make Sure You Stay On Top Of Your Payments

7 March 2017
 Categories: , Blog


One of the main criteria for filing for bankruptcy under chapter 13 is that you have to make payments to your repayment plan consistently. Your repayment plan is usually going to be anywhere from 3 to 5 years long depending on your income and the amount of debt that you owe. In the event that you miss a payment or fail to pay back the entire value of the plan, your bankruptcy filing might get dismissed in court. To prevent this from happening, utilize these three tips to make sure that you stay on top of your payments.

Request for Payments to Be Automatically Deducted from Your Income

If you're not very good at managing your finances, then you definitely want to confirm that your payments go towards paying the repayment plan before anything else. The best way of doing so is to request the bankruptcy courts to automatically deduct the monthly payments from your paycheck. This way, you'll avoid accidentally spending too much money and not having enough for your creditors.

Have Trustee Send Periodic Statements More Frequently

Your bankruptcy trustee or lawyer is responsible for sending you periodic statements that include information like the amount of debt that you still owe to each creditor and the amount that you have already paid. You definitely don't want to be ignorant about what those numbers are. To further ensure that you stay on top of your payments, request the trustee to send periodic statements more frequently for you to review. This will help you keep track of how much you still owe.

Save Up Disposable Income In Case of Emergencies

Despite having to spend the majority of your income on paying back your creditors, you are still given some disposable income through the repayment plan. Overspending is what got you into this mess in the first place, so be sure to avoid that. Be as frugal as possible, and save as much of your disposable income as you can. This money will come in handy in the event that any emergencies occur. For example, you won't have to be worried about missing payments even if you were not scheduled to work as many hours as you expected one month.


Be prepared and be careful to avoid missing any payments to your plan. If you aren't able to make all payments, all your efforts may be wasted, and your filing might get dismissed in court. A good bankruptcy lawyer will do all that they can to keep you on track. They will monitor your progress, and help you avoid any financial obstacles that might come your way.