Who can file for Chapter 13 Bankruptcy
ď śFor some debtors, filing for bankruptcy is the only option. However, it is a legal procedure which could take a while as processes would need to be made and requirements must be fulfilled. ď śFor some, Chapter 13 Bankruptcy is the better option to make. But who are eligible for filing Chapter 13 Bankruptcy?
ď śIn order to qualify for Chapter 13 Bankruptcy, a debtor must have sufficient disposable income. This is necessary so that the court will see that the debtor is capable of fulfilling his repayment obligations. ď śThis is different from Chapter 7 Bankruptcy wherein the debtor is incapable of paying any of his obligations after deducting allowed expenses from his gross income.
Also, the debtor’s debts must not be too high. Secured debts must not exceed $750,000 and unsecured debts must not exceed $250,000. Secured debts are those that have certain properties such as car or real estate as collateral in case the debtor is unable to pay. Unsecured debts are those that do not come with collateral. Examples of unsecured debts are utility and credit card bills.
Another important thing to ensure before filing for Chapter 13 Bankruptcy is giving the court proof of current income tax filings. Failure to do so can postpone the proceedings. The debtor must be able to submit proof that he has filed income tax returns four years prior to the date of filing for Chapter 13 Bankruptcy.
ď śIt is also important to note that businesses cannot file for Chapter 13 Bankruptcy under the business name. A business owner may file for Chapter 13 Bankruptcy as an individual.
To help a debtor determine whether he is eligible to file for Chapter 13 Bankruptcy, he may seek the advice of a bankruptcy lawyer who can help him and represent him in court. We can help call and ask for Jeff A. Cancilla 714-702-5295. Find out more here: http://www.blogtalkradio.com/jeffreycancilla