What are your obligations as a debtor?

As a California resident, what do you do when your debts get out of hand? How do you deal with them? Do you consider applying for bankruptcy? If so, what type of bankruptcy works best for your situation? 

If you decide to go with Chapter 13 bankruptcy, understand that you will have obligations. These obligations are specific to this type of bankruptcy. You should consider them seriously. 

Stick to your repayment plan 

The United States Courts discusses the basics of Chapter 13 bankruptcy. This includes your obligations as a debtor. All debtors have obligations regardless of what type of bankruptcy they go for. With Chapter 13 bankruptcy, what is your primary obligation? You must stick to your repayment plan. The entire point of Chapter 13 is to restructure your debt in a way that makes it possible to pay it off. If you cannot, there are no second chances. 

Pay debts back in proper order 

Your obligations within the bankruptcy often have to do with who you pay back. The order in which you pay debts back is also important. For example, you must pay off priority debts first. This includes money owed to employees or ex-spouses. The last debts belong to unsecured creditors. This may include medical bills, back rent and credit card charges. 

Of course, your obligations also cover bankruptcy itself. You need to file your paperwork on time for eligibility in the first place. On top of that, you must pay your filing fee in time before you can proceed. If you follow these rules, you will meet your obligations. This allows you to progress with greater ease.