Phones Answered 24 Hours A Day Call 412-376-5878
Thompson Law Group, P.C.
Experienced Lawyers on Your Side
Menu / Navigate
Secondary Nav

Chapter 13 and the requirements to make it work

When a Warrendale debtor decides to take the steps necessary to get back on stronger financial ground and would like to ensure that he or she can keep certain possessions like a home or an automobile, they will choose Chapter 13 bankruptcy. While this is a wise step, it is also important to understand the various requirements and obligations the debtor will need to fulfill to make the plan successful. Failure to do so can sabotage the plan and prevent its completion.

The debtor must provide information to the court about income, a list of creditors, property owned, and cost of living. It is also necessary to complete a credit counseling course, provide a copy of the most recent tax return, prove that taxes were filed for the previous four years, and have a repayment plan for the Chapter 13 bankruptcy. There is a filing fee and an administrative fee. These can be paid in four installments provided the final installment is paid within 120 days of the date that the case was filed. There can be an extension in which it is paid within 180 days.

The first payments for the repayment plan regardless of whether it is for three or five years must be made within 30 days after filing. The bankruptcy trustee will hold the payments until the plan is confirmed or denied by the court. If it is denied, the debtor will get the money back. If the plan is confirmed, the trustee will distribute the money to the creditors based on the framework of the plan.

Filing for personal bankruptcy is a difficult decision to make, but people who are experiencing financial trouble can get out of that cycle of debt by successfully completing a Chapter 13 case. It is imperative, however, to complete all the necessary obligations as part of the plan. A lawyer can help with all the aspects of filing for Chapter 13 and should be contacted to understand the entire process.

Source: bankruptcy.findlaw.com, "What are a Debtor's Obligations under Chapter 13?," accessed on Jan. 29, 2018

No Comments

Leave a comment
Comment Information

Contact the Firm

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Warrendale Office
Main Office
125 Warrendale-Bayne Road
Suite 200
Warrendale, PA 15086

Phone: 724-292-7399
Map & Directions

Pittsburgh Office
DOWNTOWN PITTSBURGH
555 Grant Street Suite 331
Pittsburgh, PA 15219

Phone: 412-376-5878
Map & Directions

Greensburg Office
GREENSBURG OFFICE
101 North Main Street, Suite 104-A
Greensburg, PA 15601

Phone: 724-292-7399
Map & Directions

Canonsburg Office
Satellite Office
2400 Ansys Drive
Canonsburg, PA 15317

Phone: 724-292-7399
Map & Directions

Monroeville/Wilkins Township office
Satellite Office
400 Penn Center Boulevard
Suite 101
Pittsburgh, PA 15235

Phone: 412-376-5878
Map & Directions