If you have plans to file for Chapter 13 bankruptcy, you must first learn more about the requirements. Even though you may be interested, it doesn’t mean you meet all the eligibility requirements set forth by the law.
Here are some things to remember:
- Chapter 13 bankruptcy is for individual consumers, not business entities
- If you discharged debt in Chapter 13 bankruptcy over the past two years or in Chapter 7 over the past four, you are ineligible to proceed at this time
- You must fulfill the credit counseling requirement
- Your debts cannot be too high, as Chapter 13 bankruptcy is only available to those with less than $336,900 in unsecured debt and $1,010,650 in secured debt (these numbers change every three years to account for inflation)
- You must have filed all federal and state income tax returns
- You must propose a repayment plan that includes all required debts
- You must have sufficient income to pay back debt through your proposed repayment plan
If you come to find that you’re eligible for Chapter 13 bankruptcy, you can push forward with the first steps in the process.
Conversely, if you aren’t eligible at this time, you need to consider other options. In addition to Chapter 7 bankruptcy, you’ll want to look into things such as debt counseling and consolidation.
Filing for Chapter 13 bankruptcy is a big deal, as it will impact both your personal life and finances. As long as you know the requirements and are clear as to what to expect during the process, you can get started with a clear mind and confidence that everything will work out.