Question What Should I Know Before Filing Chapter 13? Would Love Your Insights!

[summersquash]

Hi BK Forum,

I'm preparing to file for Chapter 13 and would really appreciate hearing from those who’ve been through it — especially anything you wish you had known before starting the process.

Here’s my current situation:
I recently had to take a lower-paying job and starting next month, I won't be able to keep up with my unsecured debts (mostly credit cards and personal loans). Up until now, I’ve been floating by using savings and borrowing, but that’s no longer sustainable.

I’ve started talking with a bankruptcy attorney and we’re in the early stages — gathering documents and reviewing income, expenses, and assets. I do own a home and my goal is to protect it and pay off the debt I accrued through a 3-to-5-year repayment plan.

I’d be incredibly grateful if anyone could share:

• What do you wish you had done or known before filing?
• Any missteps or surprises you encountered?
• Things that helped make the process smoother or less stressful?
• Budgeting or documentation tips that really helped?
• What about ability to save money in a 401k, savings account or checking?
• Any allowances for pets?

I want to go into this as informed and prepared as possible, so any insights would mean a lot. Thanks in advance to everyone willing to share their experiences — I’m listening and learning!

Thanks!!

[shipo]

I have two pieces of advice; the first, make sure you're contributing at least as much into your 401(k) as qualifies for a match; I started out doing that, and then each subsequent year I upped my contributions to keep my salary flat for the full five years.

The second is go out and buy a new(er) car will a full 5-year warranty and maintenance, and finance it all. The car will then be paid through the bankruptcy. Whatever you do, don't do what I did and start your Chapter 13 with an old car; by the time my fourth year rolled around, my car had over 200,000 miles on it, and while it was mechanically sound, it was rusting away from underneath me.

[summersquash]

Thank You shipo those are two things I never thought about. I am going to check into that 401k match right now. Thanks Again!