Deciding to file for bankruptcy and to utilize the protections of the bankruptcy courts should not be done capriciously. A debtor must fulfill significant commitments in order to complete the process and to avoid further financial and legal issues that may result if they elect not to take their obligations seriously. A general overview of what debtors may face if they begin the Chapter 13 process can be useful for our readers.

One of the first commitments that Tennessee residents will face when they begin the Chapter 13 process is the requirement that they pay a filing fee. The fee may be paid in full or the debtor may be able to secure a payment plan that spreads the fee out over a period of time. If the fee is not fulfilled within a statutorily set period of time the debtor’s case may be thrown out.

Also, in addition to a filing fee, a debtor must provide the bankruptcy court with many different documents. For example, a debtor pursuing Chapter 13 bankruptcy must prove they completed their credit counseling course, provide certain tax documents and provide their plan for repaying their creditors.

The repayment plan is a critical component of the Chapter 13 process, and therefore a debtor is obligated to repay their creditors in order to receive their bankruptcy discharge. Repayment, documents and fee filing and other requirements must be fulfilled in order for a person to complete the Chapter 13 bankruptcy process. To learn more about the obligations debtors may face as they begin a Chapter 13 bankruptcy, readers may wish to contact bankruptcy and debt relief attorneys.