Michigan residents go through a long process when deciding to file for bankruptcy. It is important to understand if this option is right for you. Once you decide that, you must choose which type of bankruptcy suits your situation.

If you choose Chapter 13, you must then make sure you can fulfill your obligations. But what are these obligations entail?

Your initial obligations during Chapter 13

The United States Courts discusses a debtor’s obligations in Chapter 13 bankruptcy. First, you must file the appropriate documents and make your payments. This is the same no matter what branch of bankruptcy you go for. You must have a credit counselor’s certificate of completion. If you have a repayment plan, you must provide a copy. You must provide proof that you have filed taxes over the last 4 years. You must also have a transcript or copy of your last tax return.

Obligations over 3-5 years

Next, focus on how to repay your creditors according to a 3 to 5 year repayment plan. You must repay debtors in a certain order. For example, priority debts go first. This includes child support or wages you owe to employees. Debts to unsecured creditors go last. This includes credit card charges, medical debt and back rent.

After you create this plan, the only obligation is to stick with it. Chapter 13 bankruptcy is somewhat unforgiving. If you fail to stick with your plan, there is no backup. A bankruptcy court has full rights to dismiss your case if you cannot stick with the plan. This puts you right back at square one, but without bankruptcy as an option.