If you are struggling with overwhelming Debt, you may be wondering if filing for Bankruptcy is the right solution for you. Chapter 13 bankruptcy, also known as a wage earner’s plan, is a popular option for individuals who have a regular income but are unable to pay off their debts. In this blog post, we will discuss the qualifications for Chapter 13 bankruptcy and help you determine if you are eligible.

To qualify for Chapter 13 bankruptcy, you must meet certain requirements. First and foremost, you must have regular income. This income can come from a job, self-employment, or even social security benefits. Your income must be sufficient to cover your living expenses and pay off your debts according to a court-approved repayment plan.

Second, you must have total debt of no more that $2,750,000.  This includes all debt, both secured and unsecured.  This limit is adjusted periodically to account for inflation.

Third, you must be able to show that you have filed your income tax returns for the past four years. If you have not filed your tax returns, you may need to do so before you can file for bankruptcy.

Fourth, you cannot have filed for Chapter 13 bankruptcy within the past two years or for Chapter 7 bankruptcy within the past four years. If you have recently filed for bankruptcy, you may need to wait before filing for Chapter 13.

Finally, you must complete a credit counseling course from an approved provider within 180 days before filing for bankruptcy. This course will help you understand your options for managing your debts and may suggest alternatives to bankruptcy.

Assuming you meet these requirements, you may be eligible for Chapter 13 bankruptcy. The next step is to consult with a Bankruptcy Attorney to determine if it is the right option for you. Your attorney will review your debts, assets, income, and expenses to help you decide if Chapter 13 bankruptcy is the best way to get your finances back on track.

If you do decide to file for Chapter 13 bankruptcy, you will need to work with your attorney to create a repayment plan that is approved by the court. This plan will allow you to pay off your debts over a period of three to five years while keeping your assets and property.

In conclusion, Chapter 13 bankruptcy can be a powerful tool for getting your finances back on track. If you have a regular income, owe less than the debt limits, have filed your taxes, and have completed credit counseling, you may be eligible for Chapter 13 bankruptcy. To learn more about your options and eligibility, consult with a bankruptcy attorney today.

Feel free to reach out to your Fairfield bankruptcy attorney at 707-385-0422

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