Doing the right thing in your bankruptcy is important because dong the wrong thing can have disastrous results.

Things you should never do in a Chapter 13 bankruptcy:

  1. Don’t fail to notify the bankruptcy trustee and/or your bankruptcy attorney that you’ve had a change in your financial circumstances.  That means that if you lost your job during your Chapter 13 bankruptcy don’t bury your head in the sand and just stop making payments, let your bankruptcy attorney and the bankruptcy trustee know.
  2. Never just stop making payments and never take it upon yourself to send in less than what you agreed to pay in your Chapter 13 bankruptcy. Any changes in your Chapter 13 bankruptcy plan payments must be approved by the bankruptcy trustee.  If you lost your job or if your salary was reduced and you need your payment plans reduced this must be worked out with the bankruptcy trustee.
  3. Never hide and spend new assets or “windfalls.”  If you receive an inheritance, receive a tax refund, win the lottery or receive any other windfall in bankruptcy, you must report it to your bankruptcy attorney and trustee.  Some of that money may need to be distributed to creditors in your bankruptcy.
  4. Don’t take on new debt during your Chapter 13 bankruptcy without the approval of the trustee.  Even if you “need” to take on new debts, such as buying a new car or refinancing your house, you must get approval from the bankruptcy trustee before you sign a new loan.