Mississippi residents may feel unstable after falling into debt. It is often hard to see the way out. But you have bankruptcy options to choose from. Today, we will take a look at Chapter 13 bankruptcy.
In particular, we will discuss your obligations as a debtor. Filing for bankruptcy is a good way to handle your debts. But it is important for filers to understand one thing. They have obligations to uphold through the duration of the bankruptcy.
Starting Chapter 13 bankruptcy
The Mississippi Bar discusses information pertinent to filers of Chapter 13 bankruptcy. First, Chapter 13 filers must fill out the appropriate paperwork. A filing fee often accompanies this. Any type of bankruptcy involves paperwork and fees of some sort. This is not unique to Chapter 13 bankruptcy. You have a certain amount of time to file. In some cases, you may hold eligibility for an extension.
Utilizing repayment plans to get out of debt
After that, you work with professionals to build your repayment plan. This plan must prioritize certain debts above others. For example, late child support payments come first. They are part of a group of debts called priority debts. Meanwhile, debts to unsecured creditors are last on the list. This includes things like medical bills or credit card debt.
Once you create the plan, you must stick to it. This is the most crucial part of understanding Chapter 13 bankruptcy. There is no do-over. There is no secondary plan. You create your plan and you must stick with it until you pay your debts off. This is why it is so important to create a good, realistic plan from the start.