How Do I know if I Qualify for Chapter 13 Bankruptcy?
For people filing for bankruptcy in Arizona, one type may be better than another. When filing bankruptcy, Chapter 13 may allow you to pay a portion of your debts without losing important assets like your house. Through a repayment plan, you will meet the requirements of your creditors, without being harassed for collections. And, with careful attention to deadlines and payment amounts, you may be able to save your home.
If you’re thinking about filing for bankruptcy in Arizona, it’s important to understand what qualifications you must meet. As a type of bankruptcy, Chapter 13 has stringent rules for who can qualify.
Do I Qualify For Bankruptcy?
In the beginning of the process many people wonder, do I qualify for bankruptcy? It seems like a good way to start over, but can be intimidating, especially if you are unsure of where you stand. Talk to an attorney to get the most detailed, individualized assessment of your situation.
There are some rules that apply to everyone considering bankruptcy under Chapter 13.
You must file for this type of bankruptcy as an individual, not a business. Business-related debts for which you are personally liable may fall under this type of filing, however.
If you are filing for bankruptcy in Arizona under Chapter 13, your income and debt levels are important.
The bankruptcy courts will look at your income, minus expenses and payments on secured debts, to determine your eligibility. You must have sufficient disposable income to meet the terms of a repayment plan. The income can come from multiple sources, including wages, commissions, pension, benefits, and proceeds of selling property.
Your secured debts and unsecured debts must be under the set-out limits. Your attorney can explain the most current guidelines to you when you express an interest in filing for this type of bankruptcy (Chapter 13).
Finally, it is important that you be up to date on all tax filings.
These requirements are the same for everyone, but as an individual you may have specific circumstances that could affect your claim.
This blog is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this blog. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.