Chapter 13 Eligibility
Some debtors may recognize that they are not entirely without a means to achieve their goals of becoming debt-free, but cannot attain such financial stability alone. As a result, Chapter 13 bankruptcy can help debtors who wish to enter into bankruptcy as a means to assist debt payment and help prevent foreclosure and repossession. However, there are a number of rules concerning eligibility for Chapter 13.
If you need help getting out of debt, contact Birmingham Chapter 13 bankruptcy attorney Paula Greenway at (205) 324-4000 to learn more about your options.
Chapter 13 Eligibility and Disqualification
Unlike Chapter 7, Chapter 13 bankruptcy permits debtors to retain much of their property while working off their debts to creditors. However, there are certain grounds that may disqualify a debtor from filing for this type of bankruptcy. Major eligibility rules regarding Chapter 13 include:
- Debtors should have a steady income
- Debtors are permitted to be self-employed
- Secured and unsecured debts cannot exceed adjusted amounts
- A debtor cannot file within 180 days after a dismissed bankruptcy case
- A debtor must attend credit counseling sessions within 180 days before filing
As the primary purpose of Chapter 13 bankruptcy is to provide debtors with a means to work through their debts in a structured environment, these standards are established in order to improve the rate of debtors who can plausibly repay their creditors.
Bankruptcy can be an effective solution for regaining control of your finances. However, without the knowledge and advice that an attorney can provide, the process can be difficult to handle. For assistance with your case, contact Birmingham Chapter 13 bankruptcy attorney Paula Greenway by calling (205) 324-4000 today.