4 Ways To Be Eligible For Chapter 13 Bankruptcy
Posted on: 11 November 2015
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If you're having difficulty paying your bills, you may want to consider filing for Chapter 13 bankruptcy. This will allow you to reorganize your debt and is an ideal way to help lower your monthly payments. However, you must qualify for this status, and knowing the ways to help you do so are ideal if you're in a financial bind.
Sufficient disposable income
You must be able to prove to the court that you have the necessary amount of income to repay your reorganized debt. Listed below are the types of income that you can list:
1. Social Security benefits – If you're retired, you can use your social security income.
2. Wages from your employer – The amount of money you make on your job each day is frequently used for income verification.
3. Money from welfare – If you receive money from the government, you can list it as your income.
4. Unemployment benefits – If you currently don't have a job, then you will be able to list the amount of your unemployment income.
5. Child support payments – Any money that you receive for children you have from your spouse can be used when filing for Chapter 13 bankruptcy.
6. Rental income – If you have rental property, you can include this.
Have the right filing status
In order to be successful for this type of bankruptcy, you can't be a business or even a sole proprietorship. Only individuals can file for a Chapter 13 bankruptcy.
Meet the debt requirements
In order to be eligible for this bankruptcy, you must meet the debt requirements that are set in place. The maximum amount for secured debt is $1,149,525 and for unsecured debt, you must have less than $383,175.
However, keep in mind that this amount is regularly adjusted for inflation.
Up-to-date on income tax filings
You must have filed both your federal and state income taxes for the last four years before you will be capable of filing for this bankruptcy. Some jurisdictions will allow you extra time to get caught up on past filings if you're behind, but these must be produced by your court date, or your case will be dismissed.
Being able to reorganize your debt may be the financial help you need. It's ideal to consider filing for Chapter 13 bankruptcy, if so. Be sure to rely on the expertise offered by a bankruptcy attorney such as Richard S. Ross - Bankruptcy Attorney if you feel you need assistance.