If you're interested in Chapter 13 bankruptcy, it's easy to believe that you can simply move forward with the process. However, this isn't always true. Instead, you must meet a variety of eligibility requirements.
Here are a few of the most important details to keep in mind:
-- Only individuals are permitted to file for Chapter 13 bankruptcy. In other words, businesses are not eligible. Instead, these entities must consider if Chapter 11 bankruptcy suits their needs.
-- Past bankruptcy filings. Did you file for Chapter 7 within the last four years? How about Chapter 13 within the last two years? If so, you will not be able to file for Chapter 13 bankruptcy at this time.
-- You must fulfill the credit counseling requirement. If you want to file for Chapter 13 bankruptcy, you must provide the court with a certificate showing that you have completed credit counseling within 180 days of filing.
-- Your debt is not too high. If you have too much unsecured and/or secured debt, you are not eligible to file.
-- You must be current with all income tax returns.
As you can see, there is a lot to think about as you consider Chapter 13 bankruptcy. Some find that they meet all these eligibility requirements. Others, however, soon learn that one or more of these is stopping them from filing.
If you're on the fence in regards to Chapter 13 bankruptcy, don't hesitate to learn more about the process, including the pros and cons, as well as what it takes to be eligible.
Source: FindLaw, "Who Can File for Chapter 13 Bankruptcy?," accessed Jan. 02, 2017