Owing to the specific circumstances of the client, the recommendation is to file a Chapter 13 in Topeka KS. Once the petition is filed and the client has complied with the court requirements, life will change for the next three to five years. Here is what to expect once the court approves the plan and payments are being made according to the schedule.
Opening New Bank Accounts
Many people who file for Chapter 13 in Topeka KS already have checking and savings accounts. Bankruptcy laws do allow debtors to maintain a certain amount in each account. One thing that will require permission from the court is to open a new bank account.
For example, the debtor’s current institution is bought out by another bank. The changes to policies and procedures are causing difficulties for the individual. Instead of going to another bank and opening an account, it will be necessary to seek permission from the bankruptcy trustee. The trustee can also provide documentation that confirms the debtor is opening the new account with the authorization of the court.
Financing a Car Purchase
For the most part, taking on new debt during a Chapter 13 is not allowed. Some exceptions are made, especially if they involve something like replacing a car that is not worth repairing. Before attempting to make the purchase, it pays to talk with the trustee and obtain permission. The goal is to determine if the client can reasonably work in a monthly car payment and still honor the obligation to the court. Keep in mind that the permission to purchase a replacement vehicle does not mean the debtor can go out and purchase a top of the line model. The emphasis will be on reasonable transportation that does not create the severe hardship.
Operating on a Cash Basis
Even if the debtor has a credit card that survives the bankruptcy action, it pays to not use the card and maintain a zero balance. That means learning to operate the household on a cash basis. While that may be difficult at first, many people adjust and find that they love the saving up for things they need or want.
If bankruptcy is beginning to look like the only solution, Visit the website today and arrange to speak with a legal professional. Together, it is possible to come up with the solution that is right for the debtor.
