What are the rules for spending money during Chapter 13 Bankruptcy?

When filing for Chapter 13 Bankruptcy in Virginia, individuals typically must follow a budget created by their bankruptcy trustee. This budget should include all essential expenses, such as housing, food, clothing, utilities, and transportation. Before incurring any new expenses, individuals must first receive approval from the bankruptcy court. In most cases, spending on luxury items, such as vacations or a new car, is prohibited by the bankruptcy court. Any purchase of luxury items must receive prior approval from the court, and the person filing for bankruptcy must prove to the court that the purchase is necessary. Additionally, individuals must also remain current on all mortgage payments and other secured debts, such as car loans, during the Chapter 13 Bankruptcy period. Failure to do so could result in the debt being discharged and the collateral property being sold off to pay for the debt. Before making any large purchases, individuals filing for Chapter 13 Bankruptcy should consult their attorney to ensure that they are not violating the terms of their bankruptcy agreement. It is also recommended that individuals only make purchases that are necessary for survival and to adhere to their budget as much as possible.

Related FAQs

What are the rules for spending money during Chapter 13 Bankruptcy?

Related FAQs

Related Blog Posts