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

Chapter 13 Bankruptcy Law in West Virginia comes with certain restrictions on spending. The overall goal is to reduce an individual’s debt, which is why spending must be monitored. At the start of the Chapter 13 bankruptcy process, an individual’s income will be taken into consideration. A budget will then be created, detailing how the individual’s money will be spent. The budget must be approved by the court and will include things such as essential living expenses, mortgage payments, and bankruptcy payments. The budget can be revised if there are unexpected expenses or if the individual’s income changes. In addition to the budget, certain debts and payments will be prioritized so that they are paid off first. These debts typically include certain taxes or child support payments. Any other expenses not included in the budget must be approved by the bankruptcy court. Overall, during Chapter 13 Bankruptcy, an individual should avoid making any large purchases, such as a car or home. Additionally, an individual should not take out any loans or pay off any debt that is not listed in the budget. This could put the bankrupt individual in violation of the law, which could result in the bankruptcy case being dismissed.

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

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