Louisiana residents have options to choose from if they fall into debt. One of these options is bankruptcy. Two types are common for individuals. These are Chapter 7 and Chapter 13.
Today, we will take a look at Chapter 13 bankruptcy. This bankruptcy has many benefits to offer people. There are other things you should know about it, too. For example, debtors hold several obligations if they file for Chapter 13 bankruptcy. Today we will examine them.
Paying filing fees and debts
First, you must pay your filing fees and file the appropriate paperwork. As with any bankruptcy, Chapter 13 bankruptcy filing is a process that has certain steps. You cannot even begin until you submit your paperwork. Filing fees are due in 120 days, or 180 if approved for an extension.
After that, it is your primary obligation to pay back the debts you owe. You pay these debts by priority. For example, priority debts are your first focus. This includes things like alimony and child support. Unsecured debt should be at the bottom of your list. This includes back rent and credit card bills.
Sticking to your payment plan
Finally, once you create a plan, you must stick with it. It is crucial for your plan to have reasonable goals for this reason. There is no backup plan after Chapter 13 bankruptcy. You must successfully pay off your debts.
Do you want to continue reading about your bankruptcy options? Are you curious to learn more about Chapter 13 bankruptcy? Do you want to know about the obligations of a debtor? If so, take a look at the linked webpage here.