If you are unable to pay your debt, you may eventually need to file for bankruptcy. Chapter 13 bankruptcy can be an advantageous option if you meet certain requirements.
How This Form of Bankruptcy Can Help
If you are struggling to pay your bills, being forced to give up your home and other assets can be an additional burden on your already highly stressful situations. Fortunately, in Chapter 13 cases, you will typically be allowed to keep your property.
Determining Whether You Are Eligible
Not everyone can file for Chapter 13, though. There are two main criteria that you would need to meet In order to be eligible. First, there are limits to the amount of debt you may have. Your secured debt, which has property attached to it, cannot be greater than a little over a million dollars. Your unsecured debt, however, should be less than a couple of hundred thousand dollars.
Another important element to consider is your ability to repay the debt. A crucial part of filing for this method of bankruptcy is typically a plan detailing how you will pay back your loans. If you are not earning enough income to repay the loan in a timely fashion, you may not be able to file for Chapter 13.
Chapter 13 can be a perfect solution for individuals who have gone deep into debt but are still making enough money to be able to repay some of that debt. Contact W. Mack Rice, Attorney at Law to learn more about Chapter 13 cases.