Bankruptcy courts frown on people incurring new debt while their cases are active, but they understand things happen that require petitioners to take on more bills. Thus, it's possible to purchase a vehicle while you're still paying on your chapter 13 bankruptcy, but you need to do these two things first.
Create a Car-Payment Friendly Budget
The purpose of chapter 13 bankruptcy is to make your debts more manageable. So, the trustee in your case won't even consider your request unless you can show you have enough money to cover the monthly car note, required insurance, and your plan payments.
Once the big bankruptcy decision has been made, you might think that you are on your way to the financial fresh start you envision. No matter how much thought has gone into your decision to file, though, going ahead with a filing might need to wait if you fit one of the categories below. Read on and find out what kind of things could have you delaying your bankruptcy filing for a bit.
Pursuing a bankruptcy filing can feel like a stressful thing to even think about. It is, however, an opportunity to get a fresh start, and you should approach it with that mind. Here are three items the folks at a bankruptcy law firm will tell you to expect during the process.
Hard Questions About Finances
The two main forms of personal bankruptcy in the U.S., Chapter 7 and Chapter 13, represent different ends of the spectrum in terms of a person's ability to keep paying their creditors.
People hire tax attorneys for a multitude of reasons, but you're apt to seek the services of this legal professional when you're in somewhat of a difficult financial situation. If your business is being audited, you'll definitely want to start working with your bookkeeper or accountant, but this is also the time to seek representation from a tax attorney. This individual has likely helped a long list of former clients successfully navigate audits and will be able to do the same for you.
If you're having trouble keeping up with your bills, you're likely feeling a lot of stress and frustration. It's upsetting when you feel you can't pay for your normal expenses and also pay for all your past debt that just keeps piling on. Some individuals and families turn to bankruptcy as a way to get a fresh start. This may be an option that you want to consider. It's a good idea to always hire a bankruptcy lawyer when considering this financial move.
