Who All Are Eligible To File Chapter 13 Bankruptcy?
sapan | Bankruptcy, Mortgage Refinance | January 19th, 2011 | No Comments »
Chapter 13 bankruptcy is open for individuals who have very high amount of personal debts, under this bankruptcy an individual can clear his debts over 3-5 years.
When a person is struggling with his credit card payments, outstanding bills and other mortgage car payments, he may be deep inside the debt. At a point a person may feel that he is totally submerged in debts and he won’t be able to come out. Luckily, America offers assistance to the debtors who are under stress and want to have a new financial start. Bankruptcy is an option for all those who are buried under heavy debts, though it has its own downside but it’s a good alternative. People who are looking forward to filing bankruptcy can contact Bankruptcyonly. It services are credulous and renowned in overall America. Check Your Eligibility To File Chapter 13 Bankruptcy »»
People usually file chapter 7 or chapter 13 bankruptcy, below given are the details of chapter 13 bankruptcy.
Chapter 13 bankruptcy
This bankruptcy option is open for those individual who have high amount of personal debts. under the chapter 13 bankruptcy filing an individual clears over 3-5 years. Thus a debtor gets a period to reconsider his finances and get debt free fast. For few people this type of bankruptcy is a good option than chapter 7 bankruptcy. In chapter 7 bankruptcy, the owner has to sell of much of his assets to pay back the debts while chapter 13 will liquidate a little property to pay back the debts.
- Keep Assets that are not exempt in a Chapter 7 Bankruptcy
- You may not have to pay back anything to unsecured creditors
- You do not need to sign a Reaffirmation Agreement
- You can modify your Chapter 13 plan at anytime
- Repay Back Taxes
- Penalties associated with Willful and Malicious Injury
- Divorce Settlement Obligations are Dischargeable,
How to file for chapter 13 bankruptcy
For filing chapter 13 bankruptcy, the debtor needs to meet certain criteria. If a person has the debts above the amount which is given below than he cannot file chapter 13 bankruptcy and should prefer chapter 7. They are divided into secured and unsecured debts.
- The filer should have less than $336,900 as unsecured debts
- The filer should have less than $1,010,650 as secured debts
- The filer should be an individual debtor; there should be no partnership or corporation.
Eligibility for chapter 13 bankruptcy
The debts of the chapter 13 bankruptcy petition are paid back with the saved money thus one should have sufficient income for filing bankruptcy. His income should continue unless all his debts are paid and the income should also covered all the large expenses and still there should be disposable income which can be used for the paying the outstanding debts. Thus if a debtor doesn’t have a dependable income source then he cannot file chapter 13 bankruptcy.
If a person meets all the above requirements then he can file chapter 13 bankruptcy. Online bankruptcy attorney can help this people to file for bankruptcy. An attorney will help the filers and design a repayment plan so that all their debts are paid off. Thus one should always take help of professionals which can help them to pay their debts on time.
