Why can’t everyone take advantage of Chapter 13 bankruptcy benefits?
Any Tom, Dick and Harry who cannot pay the debts cannot file for Chapter 13 bankruptcy. Some of the eligibility criteria to file for Chapter 13 are as follows:
o Any business, even if it is a sole proprietorship, is not eligible to file for chapter 13 bankruptcy. Only debts that are tied to the business and for which the owner is personally responsible can be included for the chapter 13 bankruptcy filing 13.
o Personal bankruptcies of commodity brokers and stockbrokers cannot be included for filing Chapter 13 bankruptcies.
o If the secured debts exceed $1,010,650, the debtor cannot file for chapter 13. Home loans and IRS filing of bonds are examples of secured debts.
o If unsecured debts exceed $336,900, the debtor cannot file for chapter 13. Prominent examples of unsecured debts are medical bills, past due utility bills, credit card debts, legal bills, and department store charges.
o To prove one’s eligibility to file for Chapter 13 bankruptcy, one must show enough income, after deducting some expenses and payments for service of secured debts, to make the necessary payments.
o Proof of filing state and federal income tax returns for a minimum of 4 years prior to the bankruptcy filing date must be submitted. The Chapter 13 filing may be rejected if the applicant is not up to date with the income tax returns or has not presented any proof of being regular in paying taxes.
Do you fit the eligibility criteria listed above? If yes, then file Chapter 13 bankruptcy.
The Chapter 13 bankruptcy plan can be funded through the following sources of income:
o Income from self-employment
o Benefits through social security
o Self-employed commissions
o Benefits for work accidents
o Public benefits
o Alimony in case of divorce
or Royalties
o Salary or regular salary
or pension payment
o Seasonal wages
o Disability benefits
o Unemployment and strike benefits
o Child support benefits
or rent
o Profits from the sale of real estate
o A working spouse could also be the source of funds
The best bankruptcy advice can be obtained from bankruptcy lawyers and bankruptcy lawyers. We pride ourselves on partnering with the best, most experienced bankruptcy attorneys. Filing for Chapter 13 bankruptcy can include personal bankruptcy. Credit card bankruptcy and medical bankruptcy make up the majority of personal bankruptcy.
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