How Do I Qualify for Chapter 13 Bankruptcy?
If you are thinking of filing Chapter 13 bankruptcy in Schaumburg, IL, it is important to first know if you qualify for filing. As with all bankruptcy filings, there are certain criteria that must be met.
Common Requirements for Filing for Chapter 13 Bankruptcy
You must be an individual: Only individuals are eligible to file for Chapter 13 Bankruptcy. Businesses, even as sole proprietors, cannot file this type of bankruptcy.
You must file your taxes regularly: When filing for Chapter 13 Bankruptcy, you will be required to show proof that you have been filing both federal and state income tax returns for a minimum of the past four years. If you have not filed your taxes regularly, you will be unable to proceed with your bankruptcy filing until you can show copies of the returns.
You must have a current income: Chapter 13 Bankruptcy is designed for individuals who have an income which will enable them to pay down their debts. If you are unemployed or do not have an income of any type, you will be unable to file. “Income” can include funds received through a pension, Social Security payments, child support, and workers’ compensation.
Your debts must be within the federally-established limits: Individuals with high outstanding debt amounts will typically be ineligible to file Chapter 13 Bankruptcy. The debt limits change every several years; they are currently $1,184,200.00 for secured debts and $394,725.00 for unsecured debts.
Every situation is different, and your eligibility to file Chapter 13 Bankruptcy can change over time along with your circumstances. Working with a seasoned bankruptcy attorney can help you feel at peace during this difficult time. To learn more about qualifying for Chapter 13 Bankruptcy, contact Robert Kaplan today.