Georgia residents like you may feel at a loss when filing for bankruptcy. There is a lot of false information out there, and much of it intends to scare you.
In reality, your obligations as a debtor in Chapter 13 bankruptcy are sensible and easy to manage. As long as you know what to expect, you can reduce your concerns.
Start by filing your forms and paying your fees
The U.S. Courts look at basics for Chapter 13 bankruptcy. This includes debtor’s obligations. Your first obligation is to file all necessary forms and documents. This includes your Chapter 13 repayment plan, a copy or transcript of your most recent credit return and more. You cannot begin your plan until you submit this documentation.
Next, you need to pay a filing fee. You can pay in a maximum of four installments. You must sent the last installment within 120 days of filing. The court may grant an extension, giving you 180 days to make the payments. If you do not pay, your case will likely get dismissed.
Your primary obligations
Your primary obligation is to repay creditors. This includes paying administrative fees in full. It also includes repaying priority debts first, like child support or alimony. Other secured debts like tax liens must also get paid in full. Unsecured creditors must get payment equal to your nonexempt property. Finally, your secured debts must stay current if they survive bankruptcy.
Your last obligation is to stick to the repayment plan you create. After all, there are no second chances if you fail to stick to your plan. Prioritize your finances in any way you need to to make sure you pay back all your debts in the allotted time.