Dealing with debt often feels like a heavy burden. Fortunately, you can have guidance every step of the way if you decide to file for bankruptcy. This allows you to focus on important things, like fulfilling your obligations under Chapter 13 bankruptcy.
But what are these obligations? Why are they important? And what happens if you do not meet them?
The United States Courts defines Chapter 13 bankruptcy, including your obligations after filing. The first obligation is the main one: you must repay your debt. Chapter 13 bankruptcy allows for debt reorganization. However, you only get one chance to reorganize your debts and you must then pay them all off. There is no second option if you cannot repay your debts under Chapter 13 bankruptcy. Instead, you will face potential repercussions.
Of course, your top obligation after that involves paying off filing fees and other such charges. You cannot proceed with bankruptcy until you file everything properly, so make sure you turn all of your payments in on time.
After this, it is merely a matter of prioritizing debts. Your top priority debts include things like child support or alimony. After that, you have liens and personal loans. At the end, you have non-secured debts. These debts, you must repay in an amount equivalent to your nonexempt property. This category includes things like medical bills, credit card charges and back rent.
If you are considering this option, you may wish to speak with a legal expert. They can better prepare you for the experience ahead, allowing you to move forward with confidence.