After consulting an attorney, it was decided that filing a chapter 13 bankruptcy in Jonesboro, GA is the most practical way to deal with the unmanageable debt. While this strategy does help alleviate a lot of stress, the debtor will have to make some changes and learn to live within a strict budget. Here are a couple of things that will apply during the three to five years it will take to successfully complete the bankruptcy.
Living on an A Cash Basis
One of the first things that the attorney will tell the client is that taking on new credit while in a chapter 13 bankruptcy in Jonesboro, GA is frowned upon by the court. That means the basic living expenses plus other line items in the budget will need to be covered out of the income that the debtor generates each month. For anyone who is used to whipping out the plastic whenever the desire to buy something arises, this is a major change.
Keep in mind that it is possible to operate the home on a cash basis. It will mean learning to differentiate between needs and wants, setting aside a few dollars here and there to cover purchases outside the budget and, in general, learning to live within the means. While it will be tough at first, this approach comes with the benefit of keeping the finances simpler and easier to manage.
Buying a Car
The family car may or may not make it all the way through the bankruptcy period. Before heading to a dealer, remember that permission of the court is necessary first. When it comes to necessities of this type, the court will extend some amount of leniency. That does not mean the debtor can go out and purchase a luxury vehicle. What it does mean is that the court will take a look at the current finances of the debtor, ensure that adding a car payment to the budget will not make it impossible to make the monthly bankruptcy payments, and then approve the purchase of a modest vehicle that will provide reliable transportation.
If the financial picture becomes bleaker from one month to the next, now is the time to visit website and arrange for a free consultation. It won’t take long to determine if bankruptcy is the debtor’s best solution.