Not everyone can file for Chapter 13 bankruptcy. Some reasons you may not qualify is if you received a previous Chapter 7 discharge within the last four years or a Chapter 13 discharge within the previous 2 years.
To file Chapter 13 personal bankruptcy, you must be an individual or spouse. You will not be allowed to file Chapter 13 if you are a business, stockbroker, or commodity broker, even if your debts are personal. If you are a sole proprietor of your business and you are personally liable for any business debt, you can file for Chapter 13 reorganization since essentially, you and the business are the same.
Steady Source of Income
If you have a steady income either from a job, pension, unemployment or social security payments, and can prove that you can pay down your debts, you will be eligible to file for a Chapter 13 bankruptcy.
Your debt cannot be more than $1,184,200 for secured debt and $395,725 for unsecured debt. Be sure to ask your lawyer if these figures are still accurate at the time of your filing.
Current in Obligations
You must also be current in your child support, alimony, and tax debt if you want to file bankruptcy. Some older tax debt can be included in the bankruptcy if it meets the criteria.
If you have questions Chapter 13 or any other aspects of bankruptcy, contact a Fort Worth bankruptcy attorney to discuss whether bankruptcy is right for you.