Chapter 13 Bankruptcy – Official Bankruptcy Form 283 Basics

Filing for Chapter 13 bankruptcy means a long-term commitment to pay all or part of your debts under a Court Order Plan (I’m capitalizing here because the actual document is called a “Chapter 13 Plan”). This Plan usually lasts between 3 and 5 years and, in some parts of the country, the failure rate can exceed 70% or more.

So the deck is against you, and a successful Chapter 13 bankruptcy case relies heavily on your good relationship with your attorney. While a Chapter 7 can be quick and painless, Chapter 13 is more of a long-term partnership.

At the end of the case, there is one thing every Chapter 13 debtor must do to get a discharge. That is the filing of Official Form 283, called Chapter 13 Debtor Certifications regarding Internal Support Obligations.

The US Bankruptcy Code takes the impact of the system on children and former spouses very seriously. In fact, many sections of the law were changed with the specific purpose of protecting children and former spouses from the possibility that a consumer could use some kind of loophole to minimize their responsibilities to care for their families.

One of the things the bankruptcy system recognizes is that domestic support obligations are handled by state law and local courts rather than the federal judiciary. These two systems often do not share information, so it is difficult for the court to be sure that a bankrupt debtor is doing all that the law requires under state law.

Enter Form 283, which is required under US Bankruptcy Code Section 1328 (a). Section 1328 (a) states that

[A]s as soon as possible after the debtor has completed all payments under the plan, and in the case of a debtor who is required to pay a domestic support obligation by a court or administrative order, or by statute, after said debtor certifies that all amounts payable under such order or statute that are due on or before the certification date (including amounts owed before the petition was filed, but only to the extent provided by the plan) have been paid, unless the court approves a release waiver executed by the debtor after the relief order under this chapter, the court will grant the debtor a release …

Form 283 is simply a declaration by the debtor that he has indeed complied with the requirements of Section 1328 (a). It must be filed after all Chapter 13 Plan payments are completed, and failure to file with the court will prevent a discharge from being issued.

This is one of the many reasons why the relationship between a client and a bankruptcy attorney is so critical, especially in the context of a Chapter 13 case. A simple one-page form could stand between you and the new beginning that it deserves, unless you and your attorney are in regular contact.