The decision to file for Chapter 13 is one that can change your life. Securing your financial future in a time of hardship is one of the best ways to protect your home and family. The Chapter 13 process can help you resolve debts, fight foreclosure and obtain financial stability.
At A Glance
Chapter 13 is a form of bankruptcy, in which you work to repay a portion of your owed debts over the course of three to five years. While this may sound like a long time, the benefits of keeping a home out of foreclosure, your car out of repossession or your wages from being garnished make the extra time towards debt resolution worthwhile.
To qualify for Chapter 13 you must have a sufficient income that can support a payment plan. Because of this income requirement, Chapter 13 is helpful for those who are dealing with debts without necessarily experiencing a severe financial hardship. In other words, it is open to most who would not otherwise qualify for Chapter 7. The criteria to qualify are:
- Secured debts less than $1,081,400 and unsecured debts less than $360,475
- Enough disposable income (after essential expenses are deducted) to maintain a determined amount towards debt payment
- Current on income tax filings for the last four years
Chapter 13 is a useful tool in the debt relief process. However, it isn’t right for everyone and some aspects of your situation should be evaluated by a Dallas bankruptcy attorney before you file.