Are you going to be filing for bankruptcy in the near future? While you may be aware of some of the mistakes that you can make, it's important to know what you can do to help your bankruptcy go smoothly.
Get Health Insurance
If you are going to go through bankruptcy, know that health insurance is not something that your bankruptcy trustee can object to. The cost of health insurance is also something that can help lower your disposable income to make your bankruptcy a viable option. In addition, if you are going through the process of filing for bankruptcy, the last thing you want to have happen is take on a bunch of medical related debt soon after your existing debts are discharged.
Set Up Budget Billing For Utilities
It is possible to work with your utility companies to set up budget billing. This helps make your utility bills predictable all year round, and avoid that shock of having a high electric bill in the summer or a high gas bill in the winter. Bankruptcy works best when you have predictability with your budget as well, and can help you better calculate a repayment plan when you know what your fixed monthly costs are as well.
Switch From Whole To Term Life Insurance
Currently paying for whole life insurance? Know that your trustee may have an issue with the higher cost of whole life insurance when performing means testing. It may be best to convert those policies to term insurance, which gives you protection at a much lower price.
Get Home Repair Estimates
A common problem with a Chapter 13 bankruptcy is that homeowners do not think ahead about their costs for home repair. Those are repairs that can be factored into your budget as part of your necessary expenses, even though the expense is not happening right away. For example, if you know that you will need your roof replaced in the next few years, you should get an estimate for the cost of a new roof. This expense can then be averaged out over the term of your repayment plan so that the expense is included as a monthly expense.
If you do not get an estimate and factor those expenses into your repayment plan, then you'll need to scramble when the expense comes up. You may need to go back to court and request a change to your bankruptcy plan to factor in the cost, which will be more expensive than if you figured it out at the start. Contact a law office for more information.
Share10 May 2022
Filing for bankruptcy has a tendency to make people feel ashamed and stressed out, and can turn into a big source of depression if not handled properly. As a counselor for couples and families, I have worked with various families throughout the years who have had to go through bankruptcy. And during this time, I have seen firsthand how, with the right mindset, going through bankruptcy can make people stronger in their financial lives and careers. I started this blog to provide information about the right things to do and the things that should be avoided while going through bankruptcy to minimize stress and maximize potential once the process is over. If you have any questions or concerns, hopefully they can be addressed on these pages.