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The filer's responsibilities in a Chapter 13 bankruptcy

When Texas residents are faced with overwhelming debt, they often search for debt relief options that provide them with the most bang for their buck. In many cases, this turns out to be bankruptcy. Depending on income levels, many of those people will end up filing a Chapter 13 bankruptcy, which comes with numerous responsibilities for the filers.

People who file under any chapter under the U.S. Bankruptcy Code must file all of the appropriate documentation. Included with a Chapter 13 filing, however, is a proposed repayment plan that must outline how debts will be paid and the amounts in which they will be paid. Depending on the circumstances, the repayment plan may last anywhere from three to five years. It also must be approved by the court before it is implemented.

Other requirements for filing include the completion of a credit-counseling program approved by the court and the payment of a filing fee. Considering the fact that a filer would not be considering this debt relief option unless money was an issue, that fee may be paid in installments with the court's approval. Once the repayment plan is approved by the court, the filer is then responsible for making the payment on time throughout the length of the plan. Failing to fulfill any responsibilities could result in a dismissal of the case.

In order to obtain all of the benefits associated with the filing of a Chapter 13 bankruptcy, it may be worthwhile to consult with an experienced Texas attorney. The more informed a filer is, the more likely it is that he or she will meet all of the legal requirements. Doing so helps ensure that at the end of the repayment plan, the filer has a fresh financial start and the ability to move forward unburdened by debt.

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