Exploring Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a type of bankruptcy allows an individual the opportunity to repay their creditors under a three to five-year court-appointed repayment plan, keeping their property in the process. Just like filing Chapter 7 bankruptcy, there are requirements that must be met in order to file chapter 13 bankruptcy. If you are considering filing chapter 13, the following qualifications must be met.

You must not be a business if you wish to file Chapter 13. Chapter 13 bankruptcy is not allowed to be filed by a business owner. Only an individual or a couple may qualify for chapter 13.  Additionally, you may not have filed prior bankruptcy. Individuals who filed Chapter 7 bankruptcy within the past 2 years are ineligible to file chapter 13 bankruptcy discharge. Also, individuals who had a bankruptcy case within the past 180 days which has yet to be dismissed may not file for chapter 13 bankruptcy.

It is also mandatory that you complete a credit counseling course before you can file. The agency must create a debt management plan, which a copy must be provided to the court. The agency selected must be court-approved, and paperwork for filing bankruptcy, along with a copy of the certificate, must be provided to the court.

The amount of debt that you have is also important when deciding if chapter 13 is something that you can file. This relief is available only to those who have less than $336,900 in unsecured debts. There must be also less than 1 million $10,650 in secured debts.

It is safe to say that chapter 13 bankruptcy is quite complicated. It is in your best interest to speak with a chapter 13 attorney st louis  if you wish to file. Although it can provide the relief that you seek from financial devastation, this happens only when the proper steps and procedures are taken. With an attorney by your side, you have the expertise that you need to make it from start to finish.