Are you eligible to file for Chapter 13 bankruptcy?

On Behalf of | Aug 15, 2019 | Chapter 13

Of the many different bankruptcy options available to Connecticut residents, Chapter 13 is one of the most well-known ones. However, not every person may be eligible to file for it.

As FindLaw states, certain things may allow you to qualify for Chapter 13 bankruptcy while others may disqualify you. In order to qualify, you must not be barred by a past bankruptcy. There is a time limit between discharging debts through bankruptcy. If you filed for Chapter 13 before, you must wait two years before filing again. If you filed for Chapter 7, you must wait four years.

You cannot file as a business entity. There are types of bankruptcy specific to businesses. Chapter 13, however, is only available if you are filing either as an individual or as part of a married couple. Along those lines, commodity brokers and stockbrokers also are ineligible.

You must have a certain amount of debt, as your debt can actually be too low or high to file. To qualify for Chapter 13, you must not have more than $1,010,650 in secured debt, and cannot have less than $336,900 in unsecured debt.

You must have filed your income tax returns. Additionally, the credit counseling requirements must be met. This includes a certificate of proof that shows you got debt counseling from an accredited agency at least 180 days before filing for bankruptcy.

Due to all of the requirements, you might wish to consider contacting an experienced bankruptcy attorney. They can help you determine if you are qualified for filing and what you need in order to file.