If you are going to file for bankruptcy, it is crucial to have a solid understanding of all options on the table and determine which strategy suits your needs best. Depending on your situation, this could mean filing for Chapter 13. However, it is crucial to familiarize yourself with how the Chapter 13 process works and review various topics, such as your eligibility to move forward with a petition.
By taking the right approach to Chapter 13, you can increase your chances of a favorable outcome and finding financial freedom.
Who can file for Chapter 13?
According to the U.S. Courts, any individual has the ability to file for Chapter 13 so long as their secured and unsecured debts do not exceed $2,750,000 at the time they file a petition. This includes those who make a living through self-employment as well as those who operate unincorporated businesses.
However, it is important to note that you cannot file for bankruptcy if the court dismissed your previous bankruptcy petition in the last 180 days because you failed to appear or comply with court orders.
Is credit counseling required before filing for Chapter 13?
The U.S. Courts states that before you file for Chapter 13, you must have received credit counseling from an agency less than 180 days before you file for bankruptcy. You can take part in the counseling as an individual or through a group briefing. However, exceptions are sometimes made for emergencies and a lack of approved counseling agencies.
Chapter 13 bankruptcy can offer a variety of benefits, and you should carefully review the ins and outs of filing a petition if you have settled on this strategy.