When residents in Alabama fall into debt, what can you do? There are some options to look into when it comes to debt relief. One of these options is bankruptcy. Of the types of bankruptcy, Chapter 13 and Chapter 7 are most relevant to the average person.
Today we will look at Chapter 13. In specific, we will examine your obligations as a debtor who files for Chapter 13. To partake in this form of bankruptcy, you have to fulfill several duties. Not everyone is capable of doing this, though.
Primary debtor obligations
The first obligation in any type of bankruptcy is to file the proper documents and pay the fees. You must pay filing fees, which differ depending on the forms you must file. You must pay within 120 days unless given an extension. With an extension, you must pay in 180 days.
The primary purpose of Chapter 13 bankruptcy is to create a repayment plan. Thus, paying creditors is another obligation you have. You must pay off debts in a certain order. For example, priority debts go first. Debts to unsecured creditors can go last. Make sure you include administrative fees as well.
What else should you know?
Finally, be sure to stick to the plan you create. There is no backup bankruptcy for Chapter 13. If you decide this option is best for your situation, you must see it through to the end.
Do you have any interest in learning more about Chapter 13 bankruptcy? Are you curious about debtor obligations in bankruptcy? If you want to learn more, you can take a look at the link here. It leads to our webpage on the same topic. Learn about your bankruptcy options before making a decision. This allows you to take the most informed path.