Chapter 13 Bankruptcy Eligibility
Chapter 13 isn’t for everyone, it’s important you seek counseling or other bankruptcy alternatives before getting started. If you are determined to start your process it’s important to find out if you qualify and that you meet the requirements needed for it.
Some requirements you may need to be eligible includes:
Showing a regular income
Being current on tax filings
Have not filed for any sort of other bankruptcy
Not being a business filing - Chapter 13 is only available for individuals
Having debt under the Chapter 13 debt limits
The process continues with additional requirements that include credit counseling and other debtor education course required by the government. Followed by that you will begin to file the process. Jackson & Oglesby Law, LLC can help you determine whether you qualify for Chapter 13 bankruptcy, contact our team today. Our attorneys are prepared to guide you through all aspects of bankruptcy.
How Long Does Chapter 13 Take?
In Chapter 13, an individual’s unsecured debts are reduced and restructured into a payment plan that can last anywhere from 3 to 5 years depending on an applicant’s total income and how much is owed. Additionally, a Chapter 13 bankruptcy will appear on a credit report for 7 years and an individual may be eligible to file a second time after a 6-year period.
Two main factors which determine the length of a repayment plan include:
- Total income: A person’s total income is typically the first factor that is considered. An applicant who makes less than the median monthly salary in the state will qualify for a repayment period of three years. Those who make more than this amount will typically be put on a five-year repayment plan.
- Time needed to complete payment: A person who qualifies for a three-year schedule may still request a five-year plan if they can show that additional time within the bankruptcy process will allow them to better meet repayment requirements. Whichever route a person qualifies for, five years is the maximum amount of time a chapter 13 bankruptcy can last.