Debt can happen – and it can happen quickly. Before you know it, you’re drowning in bills – medical invoices, credit card bills, loan payments, and more. If you’re feeling like there isn’t a way out, there is an option. Filing for Chapter 13 bankruptcy can help you get out of debt through a court-approved repayment plan. 


It’s essential to avoid common mistakes when filing for Chapter 13. Some of the most frequently made errors can include:


Not Hiring a Chapter 13 Bankruptcy Attorney

When filing for Chapter 13, you don’t want to risk making a critical error. This can happen if you fail to hire an experienced bankruptcy attorney. Filing for Chapter 13 can be extremely complicated and involve a lot of paperwork and legal proceedings. To ensure these are completed correctly and that the bankruptcy can go through as planned, it’s essential to hire an attorney instead of trying to file by yourself.  


Not Providing the Correct Documents

The Chapter 13 bankruptcy proceedings involve a lot of required paperwork and documentation. Failing to provide these, or providing inaccurate information, can lead to delays or a dismissal of your case. In severe cases, it can even result in allegations of fraud. To avoid this, make sure to gather and review all necessary financial records, tax returns, pay stubs, and other relevant documentation required by the bankruptcy court.


Not Listing All Debts and Assets

 Another common mistake is not revealing all of your debts, assets, and property when filing your paperwork and creating your repayment plan. Failing to disclose this can lead to issues. The court will find the error, so it’s essential to be honest with your attorney and submit all of the required information. 


Not Following the Repayment Plan

When you create your repayment plan and have it approved by the court, you are committing to making the payments on time and pay off your debts in the three to five-year span of the repayment plan. Not following the plan or missing payments can result in your case being dismissed. If this happens, creditors can take action – including harassing you for payments or repossessing your property.


Not Creating a Budget

As part of your Chapter 13 bankruptcy proceedings, it’s important to create a budget that you can stick to – and still make your required payments. This means you should account for living expenses and your monthly repayments in your budget. This can take time to create and it’s crucial to assess all of your finances, including income, expenses, and bills. 


Not Curbing Your Spending

Failing to watch your spending during your Chapter 13 bankruptcy can be risky. Spending large sums of money and increasing your debt can be viewed negatively by the courts. Before spending a lot of money or incurring new debt, you need to consult with your bankruptcy attorney. 


When filing for Chapter 13 bankruptcy, it’s important to avoid common mistakes to prevent jeopardizing your case. Most common errors can be avoided by hiring an experienced bankruptcy attorney. A lawyer can help you organize your case and ensure you take the right steps. 


Contact an Attorney

Do you need an Oklahoma City bankruptcy attorney to help you avoid major mistakes when filing for Chapter 13 bankruptcy? You need an expert on your side. It’s crucial to hire an experienced attorney to help you review the pros and cons and answer all of your questions so you know what to expect throughout your case. Let our experts guide you through the process, help you file the documentation, keep your case moving along, and prevent you from making mistakes. Don’t let debt ruin your life. Call (405) 529-9377 for a free case review.

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