After discussing options with an attorney, the decision is made to proceed with a Lithonia chapter 13. During the three to five-year duration of the bankruptcy, the debtor is expected to more or less live on a cash basis. That will mean making some changes to the way household expenses are managed. Here are some of the strategies that can be used to ensure the debtor does not end up in more financial difficulties.
Getting Used to Living Within a Budget
Many people find the monthly amount sent to the court during a Lithonia chapter 13 is less than the cumulative total of all those individual debts. While that is helpful, it takes more than this one factor to create a reasonable home budget. As the debtor learned in the court-ordered financial management classes, a budget that helps the individual to spend less money than what’s coming in is a good thing.
It will be difficult at first to live within the limits of that new budget. The sense of being deprived is strong during those first few months. At the same time, reaching the end of a month and finding there are still a few dollars left in the food budget inspires a great deal of hope. By learning to plan meals in advance, monitor energy consumption and, in general, make better use of what the debtor already owns, it is possible to stick with the budget and even save a few dollars each month.
Learning the Difference Between Needs and Wants
There are some things that people need to get by. They need food, a place to live, and clothes. They don’t need to eat out several times a week, vacation at some distant location, or spend money to replace things that are still in great shape. Part of living on a cash basis involves knowing when it makes sense to spend money and when there is no real reason to do so. That, too, will come easier as the debtor gains more experience in determining what constitutes a want and what is a legitimate need.
Remember that filing for a chapter 13 bankruptcy is not right for everyone. Visit website today and arrange a consultation. Together, it is possible to decide what approach is in the best interests of the client.
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