For those struggling with mounting debts who want to retain their assets, Chapter 13 bankruptcy can serve as a viable means for them to do. In Chapter 13, your debt repayment plans are rescheduled based on the court’s assessment of what you can afford for the duration of the bankruptcy – which is typically 3 to 5 years.
With that said, not everyone can qualify for a Chapter 13 bankruptcy. Here is a concise checklist of what is required:
1. Must have a total of $419,275 or less in unsecured debt and a total of $1,257,850 or less in secured debt.
2. The debtor seeking relief must be an individual and not a business entity (however, business-related debts for which the individual is personally liable can be included)
3. Provide proof that you are up to date on tax filings have enough income to meet monthly repayment obligations
4. In the preceding 180 days, neither had no preceding bankruptcy petition dismissed due to willful failure to appear before the court.
or Voluntarily had it dismissed after creditors sought relief from the court to repossess property upon which they hold liens.
5. Have completed a credit counseling course from an approved credit counseling agency within 180 days before the date of filing
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