Chapter 13 bankruptcy is a good option for people with a large amount of debt but with high enough income to adhere to a repayment plan as ordered by the court. When making your payments, budgeting is crucial to make sure you continue to pay down your debts to keep up with your financial obligation. Because budgeting is difficult for many people, The Balance makes the following recommendations to keep you on track.

Step 1: Research

The first step to creating a budget involves information gathering. Bring together all relevant information regarding bank statements, bills, and any assets in your possession. This information will provide insight into your larger financial picture. Once you’ve compiled all relevant data for review, you can move onto the next step in the budgeting process.

Step 2: Record income & expenses

The goal is to have a greater income than the sum of all your recurring expenses. This is especially important when it comes to chapter 13 repayment plans. If you miss any payments, you run the risk of having the decision rescinded, which means you would responsible for paying back the total amount of debt owed to any creditors you might have. If your income and expenses are out of sync, you’ll need to look for ways to cut costs.

Step 3: Cut costs

Entertainment expenses are usually the easiest to trim down. For instance, if you eat lunch at restaurants many times during the week, packing a lunch can save you a lot of money over time. Also, consider any online subscription services you currently have to decide whether they’re a worthwhile use of your money. The money you save on cutting expenses can be used to pay off debt or even be put away to create a safety net for the future.