Filling Chapter 13 bankruptcy in San Antonio and Debtor’s obligations
Chapter 13 bankruptcy allows the debtor to retain the property and helps in planning on repayment to the creditor over the period of three to five years.
1st obligation is forms and documents to be filed by the debtor:
It is obligated to file the documents and filled form when filling chapter 13 bankruptcy in San Antonio with the confined bankruptcy court in that particular area. The debtor needs to provide certain documents to the court such as income from all the different sources, creditors list, personal and immovable property and other living expenses. There are other documents which needs to be submitted to the court by the debtor.
- A CCCC (Credit Counselling Certificate of completion) and a transcript of a repayment plan.
- A copy of the recent tax return of the debtor
- Proof of consecutive four years of tax filed previously
- Repayment plan of Chapter 13 bankruptcy in San Antonio.
2nd Obligation: Fee for filling Chapter 13 to be paid by the debtor: There’s a saying “nothing on this earth comes for free”. Exactly the same phrase wont fit here as for filling chapter 13 bankruptcy in San Antonio it allows the debtor to pay the administrative and filing fee into four instalments or a long as the last instalment is received by the court within 120 days by the court that is from the time bankruptcy is filed by the debtor or in a period of 180 days if the court grants an extension to the debtor from the date of filing.
3rd Obligation creditors must be repaid by the debtor: it is a must for the debtor to start the repayment within 30 days from filling chapter 13 in San Antonio according to three or five year proposed repayment plan. An individual is appointed by the court who is a hired person called Bankruptcy Trustee is appointed to handle debtor’s money. The trustee is suppose to hold the amount till the time the court denies or confirms the plan. Incase the plan is denied the trustee is suppose to return the money to the debtor the balance amount after deducting the administrative charges. If the plan is confirmed by the court then the trustee would distribute the amount to the creditors accordingly.
4th Obligation the debtor must carry the plan strictly : The case can be dismissed by the court at any point of time in case the debtor fails to perform according to the plan and bankruptcy law. To keep the case away from being dismissed the debtor must:
- The debtor must continue to pay alimony and child support
- He/she must continue paying the creditor in accordance to the proposed plan
- Individual should not obtain new debt without consulting the appointed trustee
- the individual should continue filling the current taxes
- Annual income and expense reports should be filed regularly
Conclusion: After filling chapter 13 bankruptcy in San Antonio the rules on the payment which is set in accordance to the monthly income can have changes in case the income is decreased or can be unexpected medical expense or anything else.