Chapter 13 Bankruptcy Qualifications

Bankruptcy was created to give people a fresh start. However, to keep people from abusing personal bankruptcy, federal law requires that people qualify. So, just what are the Chapter 13 bankruptcy qualifications?

First, you must be an individual. Chapter 13 bankruptcy is not for businesses, but for individuals. Business debts can be included in a Chapter 13 if you are personally responsible for the debts. This includes debts if you are self-employed or operating an unincorporated business.

Third, your unsecured debts (such as credit cards, medical bills, etc.) cannot exceed $307,675 and your secured debts (debts where property such as your home, car, etc. is put up as collateral) cannot exceed $922,975. These amounts are adjusted periodically to reflect changes in the consumer price index.

Forth, you cannot file a Chapter 13 bankruptcy if, within 180 days of your filing bankruptcy, a prior bankruptcy petition was dismissed because of (1) your willful failure to appear before the bankruptcy court, (2) you failed to comply with bankruptcy court orders, or (3) the prior bankruptcy was voluntarily dismissed after your creditors sought relief from the bankruptcy court to recover property upon which your creditors hold liens.

Fifth, you must have received credit counseling from an approved credit counseling agency either in an individual or group briefing within 180 of your filing personal bankruptcy.

Sixth, you must have filed your federal and state income tax returns for the latest four tax years prior to the date of your filing bankruptcy.

This is general information. If you need specific information or have any questions of any nature whatsoever, talk with a lawyer licensed in your state.

For more general information, see Bankruptcy. For more detailed information see Chapter 13 bankruptcy.

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