Legal information: What you should know before filing chapter 13 bankruptcy
Every person’s situation is unique, and please meet with a bankruptcy attorney in your state to insure that chapter 13 bankruptcy is applicable to your personal situation. The following information is provided for educational purposes only.
In a Chapter 13 bankruptcy, your home will be saved if there are little assets that aren’t exempt from seizure by your creditors and you successfully complete the payment over 3 to 5 years. All other non-exempt properties can be retained by the debtor if the payment plan is completed with success. If the payment plan is not completed, these assets will be sold to compensate creditors, as in Chapter 7 bankruptcy.
What are the implications of a Chapter 13 bankruptcy?
Individuals with steady incomes can pay their debts under the protection and supervision of the U.S. Bankruptcy Court. Since 2005, changes in the bankruptcy law disqualify a lot of people from filing Chapter 7 bankruptcy.
Chapter 13 Eligiblity.
Under the new bankruptcy law, you must receive credit counseling within 180 days before filing for Chapter 13.
You are only eligible if:
1. You will be able to pay your debt obligations. If your income is irregular or low, you may not file Chapter 13.
2. Your secured debts must be less than ,010,650, and your unsecured debts less than 6,900.
3. You were not discharged under Chapter 7, 11, or 12 within the previous 4 years, or discharged under Chapter 13 within the previous 2 years.
