Unable to Meet Monthly Household Bills while under Wage Order
Many clients contact our office to complain that the bankruptcy plan payments are making it impossible for them to meet their monthly household obligations such as utilities, rent/mortgage payments, auto payments, etc. My response to this complaint is that these monthly debts are all listed in their budget schedules and these calculations reflect they should be able to meet all financial obligations.
I have found that the one monthly debt that will suffer during bankruptcy is the monthly mortgage payment. If the monthly mortgage payment is high then I may suggest the debtor see if the keeping the home is worth the financial struggle to keep it. The decision to give up your home is not easy however I have found that reduce your monthly mortgage debt during the bankruptcy will provide the debt a peace of mind and feeling of control over their finances.
Finally, always consult with your attorney’s office to discuss what option may be best for you. It may be an auto payment, not mortgage payment, that may be putting the financial strain on your household finances. Using your head and compromising to surrender luxury items will allow you to maintain greater financial success throughout your bankruptcy.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
