Texas residents like you sometimes fall on tough financial times. It is difficult to see what you will do when you are in the middle of debt. But there are options available to you. Bankruptcy is one such option.
Among the different types of bankruptcy, Chapter 13 often stands out. But if you decide to go for Chapter 13, you must also understand the obligations that come along with it.
Starting the bankruptcy process
The United States Courts talks about bankruptcy basics, including your Chapter 13 obligations. You hold several obligations as a debtor. The first is paying your administrative fees. This includes fees that you may pay for the bankruptcy filing. Statutory trustee fees also range anywhere from 3 to 10 percent. You may also pay attorney fees, too.
Next, pay off your debt in order of priority. You must pay off some debts before others. For example, you must pay priority debts in full first. This includes alimony, child support, or wages owed to employees. On the other side of the equation are unsecured creditors. This includes medical bills, union dues and credit card payments.
Your number one priority
The primary obligation is to stick to the plan you create. The companies and people to whom you owe debts are relying on you to use this plan. They expect you are capable of making payments according to the schedule you work out. Unfortunately, there are no second chances for failing Chapter 13 bankruptcy. If you fail to make payments, you could face repercussions. You will not have the opportunity to redo your debt repayment plan.