Texas consumers can empathize with Paul Teutul when it comes to financial problems. In fact, the 69-year-old star of "American Chopper" filed a Chapter 13 bankruptcy back in Feb. 2018. Recently, however, the trustee on this case accused Teutul of failing to adhere to the court's and the trustee's requirements for the case.
One of the requirements of the trustee presiding over Teutul's bankruptcy case is for Teutul to provide either transcripts of his tax returns or the returns themselves. The trustee claims that Teutel failed to provide this information for the 2017 and 2018 tax years. Teutul was also required to submit a budget showing whether he could make the payments required by his Chapter 13 plan.
The trustee claims Teutul wants to sell his home to make the payments required under the plan, but the house remains on the market. Because of these deficiencies, the trustee wants to throw out Teutul's case, which means his creditors could come after him in an attempt to collect the amounts he owes. He is supposed to appear in court to answer the allegations on June 4.
Teutul's situation is not unique. Many people are unable to meet the requirements of their Chapter 13 bankruptcy plans. However, that does not excuse them from providing any documentation the trustee requests. When Texas residents decide to pursue bankruptcy as a debt relief option, they must adhere to the rules, which include responding to the trustee when he or she makes contact. The repercussions could include the dismissal of the case, which would put the filer right back where he or she started.