Many in New Hampshire at some point fall on hard times financially. They may lose their job forcing them to rely on credit cards for daily expenses. They may experience a serious illness that racks up hefty medical bills. Or, they may find that they have fallen behind on their mortgage obligations and when they try to sell their home to satisfy them, their home is worth less than what they still owe to the lender. These situations are not necessarily anyone’s fault, but they could spell financial disaster to even the most fiscally responsible person.
Therefore, some people experiencing significant financial difficulties will decide to file for Chapter 13 bankruptcy. It is important to understand the various requirements that come with a Chapter 13 filing. That way, the person filing for bankruptcy can ensure they do not make any missteps along the way.
All debtors filing for Chapter 13 must first go through a credit counseling session, and before their debts can be discharged the debtor must go through a post-filing debtor education session. These are meant to help debtors better understand finances and budgeting.
During the course of the Chapter 13 repayment plan, debtors must continue filing annual tax returns.
The debtor will also have to appear at the meeting of the creditors. This way, the creditors can ask the debtor questions about the debts at issue and the debtor’s finances. In addition, debtors can clarify details in their bankruptcy filing and add information if necessary.
Once the Chapter 13 repayment plan is approved by the court, payments will be made to a trustee. The debtor must cooperate with the trustee. In addition, debtors must make the required payments in a Chapter 13 filing on full and in time. If not, they may not receive a discharge.
These are only a few requirements that debtors going through a Chapter 13 bankruptcy must satisfy in order to have their debts discharged. The Chapter 13 process can be quite complicated, especially for those who are unfamiliar with bankruptcy law. Therefore, those seeking a discharge of debts through a Chapter 13 bankruptcy filing will want to ensure that they understand what is expected of them throughout the process.