When Kentucky residents fall into debt and cannot get back out, bankruptcy is an option. Today we will take a look at one type of bankruptcy, known as Chapter 13. In specific, we will look at the obligations that a debtor has after filing for Chapter 13 bankruptcy.
The first obligation is to file all necessary forms and documents. This much the same for any type of bankruptcy. You must petition for Chapter 13. Then, you must provide your local bankruptcy court with all needed documents. This can include information about income sources, living expenses and property. The court will also ask for a list of creditors.
Next, you must pay the filing fee. There is also an administrative fee. You may pay these off in up to four payment installments. The court must receive your final installment within 120 days of filing. If you get an extension, you must pay by the 180th day.
Once you make a plan, you must stick to it. This is an important part of Chapter 13 bankruptcy. There is no backup if you cannot make the payment schedule. In this way, Chapter 13 is unforgiving. Finally, your last obligation is repaying your creditors. This means paying off administrative fees, priority debts and secured debts.
If you want to continue reading about Chapter 13 bankruptcy, follow the link here. It will take you to our web page on the same subject. You can look into other information about Chapter 13 bankruptcy. You can examine other bankruptcy types as well. Understanding each option allows you to pick the one best suited to your situation.