What are the eligibility requirements for Chapter 13 bankruptcy?
Chapter 13 bankruptcy is different from Chapter 7 bankruptcy. With Chapter 13, you devise a payment plan to pay off your creditors. You can file for Chapter 13 as an individual or as a sole proprietor.
In order to be eligible for Chapter 13 bankruptcy, you must:
- Have unsecured debts less than $360,475
- Have secured debts less than $1,081,400
- Be current on your income tax filings
- Have sufficient disposable income
As stated above, you must have regular income to be eligible to declare Chapter 13 bankruptcy. You don’t have to earn the exact same amount every month, but your income must be steady—likely to continue and periodic. Following are the different types of income you can use to fund a Chapter 13 plan:
- Regular wages/salary
- Self-employment income
- Seasonal work income
- Sales commissions
- Pension payments
- Social Security benefits
- Disability or worker’s compensation benefits
- Unemployment or strike benefits
- Welfare payments
- Child support/alimony
- Proceeds from selling property
Call us toll-free today at 1-800-260-1402 for your complimentary initial bankruptcy consultation or visit one of our 100 offices across the United States. You can also read our many informative articles on our website, www.maceybankruptcylaw.com. For the best advice on filing for Chapter 7 or Chapter 13 bankruptcy protection, trust the experienced and caring attorneys at Jacoby & Meyers Bankruptcy Law.