Can I Save Money During Bankruptcy?
As a consumer bankruptcy attorney, I am often asked: Can I save any money during my bankruptcy? Well, if you filed a Chapter 7 case, this really isn't an issue. If you filed a Chapter 13 plan of reorganization, you will probably be in the bankruptcy for three to five years. The simple answer is: No, you aren’t supposed to save money; however, that is not realistic. In a chapter 13 bankruptcy, a debtor must pay to the bankruptcy trustee all of his disposable income for 3 to 5 years. Continued reasonable 401K contributions are considered an acceptable expense, but most other forms of saving money is prohibited.