new bankruptcy laws
It might not be that easy to file for chapter 13 bankruptcy although there is a provision for filing personal bankruptcy under the same. This is because to qualify for chapter 13 probable bankruptcy filers are required to meet certain specific conditions. Here is some vital information regarding the eligibility requirements for chapter 13 which could guide you in your effort if you are considering filing chapter 13 in near future.
It may not be possible for all debtors to qualify for chapter 13 bankruptcy and repay their debts since; there could be certain eligibility requirements that are stipulated by the new bankruptcy laws. This is because to be eligible for a typical chapter 13, debtors need to satisfy the below mentioned criteria.
- If you are business owner and the debts have arisen out of business for which you are totally responsible as a person, you could qualify for chapter 13.
- Commodity brokers or stockbrokers may not be eligible for filing chapter 13 but could file for personal bankruptcy under chapter 7 bankruptcy laws to get their debts discharged.
- In case the total amount of secured dues such as home loans or IRS liens exceeds $1,010,650, you might not be allowed to file chapter 13.
- On the contrary, if the amount of unsecured debts such as medical or pending utility bills, credit card debts, etc. is more than $ 336,900, then also you may not be eligible for chapter 13.
- To qualify for a chapter 13, you need to provide proof for having enough income, after carrying out deductions of permitted expenses and payments, to pay for secured debts through a court approved monthly repayment plan.
- As per chapter 13 bankruptcy rules, probable bankruptcy filers are required to furnish evidence for filing federal as well as state income tax returns for the last 4 years prior to the date of filing bankruptcy. Any failure to submit the same or inconsistency in filing income tax returns could result in rejection of your bankruptcy case.
In any case, a chapter 13 monthly repayment plan could be successfully funded if you have the following income sources.
- Income generated by self employment
- Benefits accrued from social security
- Any commissions earned on freelance basis
- Benefits received through worker's compensation
- Income derived from public benefits or royalties
- Money received from alimony in case of divorce
- Monthly salaries, wages or pensions
- Seasonal employment or disability benefits
- Income on account of unemployment or strike
- Money derived from child support benefits or rents
- Profits accrued from sale of property
- Monthly income earned by a working spouse
From the aforesaid it is quite evident that you need to have proper personal bankruptcy information provided by a competent bankruptcy lawyers when you are considering filing chapter 13. Remember, even personal bankruptcy which includes medical or credit card bankruptcy can be filed under chapter 13 if you have expert advice.
Hence, to get more vital information on how to file for chapter 13 bankruptcy, it is hereby recommended to utilize the professional services offered by reputed bankruptcy service providers like BankruptcyOnly.
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