Chapter 13 Bankruptcy Explained
Before filing Chapter 13 bankruptcy, ensure that you comply with all eligibility requirements. You also want to make sure to explore all other alternatives. Then, it is important to retain a Maryland and Washington DC Chapter 13 bankruptcy attorney to assist you. This will ensure that you make the decision that is best for your circumstances.
Generally, an individual may file for Chapter 13 bankruptcy if:
- Unsecured debts are less than $336,900 and
- Secured debts are less than $1,010,650.
Chapter 13 is often a good choice if an individual has a stable income and believes that his financial crisis is temporary. Sole proprietorships and other unincorporated business entities are also eligible to file for Chapter 13 bankruptcy if they meet the debt requirements. Corporations, partnerships, and unincorporated businesses with large amounts of debt are not eligible for Chapter 13 bankruptcy. Instead, they may file under Chapter 11 of the Bankruptcy Code.
An individual is not eligible to file under Chapter 13 if a prior bankruptcy petition was dismissed within the past 180 days due to the debtor’s failure to appear before the court, or comply with court orders. Additionally, one must engage in credit counseling with an approved credit counseling agency within 180 days prior to filing for Chapter 13 bankruptcy. Finally, if a debt management plan was developed pursuant to credit counseling, then that plan must be filed with the court when filing the petition for bankruptcy.
- Committed to the Community
- Obtain A Fresh Start
- Fair & Reasonable Rates