Are you interesting in filing for Chapter 13 bankruptcy? If so, you must first understand two things:

— If you are eligible to file

— How this will change your financial situation

Most people who don’t qualify for Chapter 7 soon find that they are eligible for Chapter 13 bankruptcy. Even so, there is no guarantee.

Here are the requirements for filing:

— You are an individual and not a business entity.

— You are not barred from filing due to a Chapter 13 discharge within the past two years or a Chapter 7 discharge within the past four years.

— A previous filing was not dismissed within the last 180 days.

— You have completed the credit-counseling requirement.

— Your debts do not exceed the limit.

— You have filed all past income tax returns.

— You have proposed a repayment plan that touches on all required debts.

— You have the ability to repay a certain amount of money to unsecured creditors.

— You earn enough money to make a monthly payment to settle your debt.

These are the types of requirements you must meet if you have the desire to file for Chapter 13 bankruptcy.

Before you decide in favor of bankruptcy, regardless of the type, learn more about the qualifications, the cost, how long it will take, and where you will end up when everything is done.

Knowing if you qualify for Chapter 13 bankruptcy is the first step in filing. Once you have this knowledge, you can make a final decision as to whether or not this is best for somebody in your position.

Source: FindLaw, “Who Can File for Chapter 13 Bankruptcy?,” accessed Dec. 01, 2015