Filing for bankruptcy protection is not something anyone looks forward to doing. Along with the sense of failure that comes from not being able to pay the bills, there is the matter of dealing with the aftermath. When the only logical course is to file for Chapter 13 in Dayton OH, the debtor is setting the stage for a number of things to happen. Here is how life will be for the next three to five years.
Living on a Cash Basis
For the duration of the Chapter 13 in Dayton OH, the debtor will most likely not be allowed to establish new credit. Along with the fact that most creditors will not be interested in doing business with the individual until the bankruptcy is fully discharged, this form of bankruptcy is basically committing the debtor to using all resources not needed for the essentials to the repaying of the debt under the auspices of the court. While allowances can be made by the trustee if the debtor needs to replace a vehicle or incurs some type of medical bills, for the most part, life will be lived on a cash basis.
Changing Spending Habits
With no credit cards on hand to reach for when it is time to pay a bill, the debtor will need to make some adjustments in day-to-day living. Many find that planning meals before heading to the supermarket makes it easier to have plenty of food in the house and still keep within the budget. In like manner, eating out several times a week will have to stop. While it is fine to go out once in a while, find places that offer decent food for lower prices.
Put Something in Savings
Many people are surprised to learn they are allowed to save money during this type of bankruptcy. In fact, it is encouraged. Even if only a few dollars can be set aside in a savings account each month, do so. When the bankruptcy is discharged, there will be at least the start toward financial security.
Chapter 13 is not the end of the world. In fact, it can be the beginning of a whole new way of thinking. Make the most of this opportunity and being able to avoid financial issues in the future will come a little easier.
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