Michigan residents who fall into debt should have ways to get themselves back out. One of these ways is by filing for bankruptcy. Chapter 13 bankruptcy is a specific type that suits the needs of some debtors better than others.
Today we will look at some of the obligations debtors hold under Chapter 13 bankruptcy. To be eligible for this type of bankruptcy, you must know that you can fulfill these obligations.
Basic obligations for Chapter 13 bankruptcy
First of all, you need to pay a filing and administrative fee. This allows you to file the many forms and documents you must complete. You can pay these fees in installments of up to four. You must pay the last installment no more than 120 days from the date you filed for bankruptcy. If the court grants you an extension, you must pay within 180 days. The documents and forms vary. But they may include lists of creditors, personal income information and living expenses.
Next, you must repay creditors. Chapter 13 bankruptcy relies on repayment plans. You must have a plan that pays all administrative fees in full. Your plan must also pay priority debts first. After that, you must pay other secured debts. Then, you must pay unsecured creditors.
What is your primary obligation?
Above all, your obligation is to stick with this plan that you create. There are no second chances if you cannot stick with a Chapter 13 repayment plan. Make sure you have one that you are sure you can stick with.
Are you interested in continuing your reading about bankruptcy? Do you want to learn more about your eligibility for Chapter 13 bankruptcy? If so, you can follow the link here to our web page. It will take you to more information on Chapter 13 bankruptcy in general.
