Chapter 13 bankruptcy is also known as reorganization bankruptcy. Filing a Chapter 13 bankruptcy allows you to retain his property while you repay debt. Typically, this takes three to five years. However, not everyone is eligible for Chapter 13. Here are the criteria for Chapter 13 bankruptcy eligibility.
Chapter 13 Bankruptcy Eligibility
There are certain criteria that an individual must meet in order to be eligible for filing the Chapter 13.
- The individual who is filing for a chapter 13 bankruptcy must not be a business entity. Registered business entities such as Limited liability companies cannot file for chapter 13. Rather, they are required to file chapter 11 bankruptcy. This means that a business owner cannot file a chapter 13 for his personal liabilities under the name of his company. However commodity brokers and stock brokers are eligible for filing chapter 13.
- Debts discharged under a prior chapter 13 must wait 2 years to file again. Debts discharged under a prior chapter 7 must wait four years to file again.
- A chapter 7 or 13 petition dismissal within the last 180 days would mean that you are not eligible for filing another chapter 13 petition in the bankruptcy court.
- You can file for a chapter 13 bankruptcy only if his debts fall within the limit as specified by the court of law. The court adjusts the maximum limit of eligibility for both secured and unsecured debt for inflation every three years.
- The individual must furnish a proof of filing for the federal and state income tax returns with the IRS for the last four years.
- The individual must have sufficient income (after deducting expenses) to cover all his debt obligations.
If you are considering filing for chapter 13, contact a bankruptcy lawyer in Dayton OH to discuss your options.