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What are some qualifications for Chapter 13 bankruptcy?

| Nov 21, 2018 | Chapter 13 |

Many people in Louisiana and across the country struggle with financial problems. In some cases, the situation may become so overwhelming that it is wise to consider debt relief options rather than letting the outstanding balances and interest continue to accumulate. Chapter 13 bankruptcy may be the best option for many people, but not everyone qualifies for this opportunity.

In order to be eligible for Chapter 13, individuals must meet several stipulations. First, parties must generate a regular income. If petitioners do not have a regular income, they may need to explore liquidation bankruptcy instead of using a repayment plan. Additionally, individuals who have filed for bankruptcy and had a case dismissed within the last 180 days due to not complying with the court will not qualify for Chapter 13. Parties may not qualify for a discharge of debts at the end of their cases if they have received a discharge in the last two years from Chapter 7 or within that last four years from Chapter 11 or 12.

The amount of debt accumulated will also play a role in eligibility. A person cannot have unsecured debts that reach more than $394,725. Unsecured debts include liabilities related to credit cards, personal loans and other debts that do not have collateral. When it comes to secured debts, such as from a car loan, balances cannot go over $1,184,200.

These requirements are only a few that interested parties would need to meet in order to qualify for Chapter 13 bankruptcy. If struggling Louisiana residents are interested in this debt relief option, they may want to gain more information. Consulting with experienced attorneys could help them better understand qualification requirements and how this type of bankruptcy could impact their financial circumstances.

Facing Overwhelming Debt?