Can I file for Chapter 13 bankruptcy protection?
Being in debt is a devastating situation that too many people in the U.S. struggle with every day. If you are one of the people who spend your days concerned about unpaid bills and harassing creditors, you should know two very important things: you are not alone and you have options to address your situation.
One such option is to file for bankruptcy protection. As an individual, you have the option or filing for Chapter 7 or Chapter 13, which can each be effective but serve different purposes. Further, not everyone qualifies for both types of bankruptcy. In this post, we will look at the eligibility requirements for Chapter 13 bankruptcy.
Chapter 13 can be an option for you if you:
- Are an individual, operator of an unincorporated business or self-employed
- Have no more than $383,175 in unsecured debts
- Have no more than $1,149,525 in secured debts
- Have not had a bankruptcy petition dismissed in the last 180 days
- Have completed credit counseling
Further, as we discussed more fully in this post on our website, a person filing for Chapter 13 bankruptcy should also have a job that pulls in a regular income. This is because Chapter 13 is a repayment plan; if you are not earning money, you will not be able to keep up with the payments.
If you meet these requirements, Chapter 13 can be a good option for you to consider as you explore your debt relief options. However, if you do not meet these requirements or do not wish to pursue this type of bankruptcy, do not worry: there are other options available. Discussing your situation and your financial goals with a lawyer can help you assess your options and figure out the best resolution for you.