Conditions For Filing Chapter Thirteen Bankruptcy
| Bankruptcy can be termed as a legal process of debt clearance filed in a court of law when the debtor is unable to pay back his debts due to financial obligations. |
Chapter 13 bankruptcy filing, also called as reorganization bankruptcy, is usually filed by debtors who are willing to pay back their debts through monthly installments. This sort of bankruptcy filing is preferred by a lot of individuals and business persons who want to continue their existing standard of living while paying off their accumulated debts. Chapter 13 bankruptcy filing is ideal for those who are having a regular monthly source of income. This is because a debtor who has filed for Chapter 13 bankruptcy needs to make scheduled monthly payments to the creditors.
The foremost eligibility for filing a Chapter 13 bankruptcy is that the debtor should have an expensive property or asset that is not covered under any sorts of exemption. However, every individual who has debts cannot file for a Chapter 13 bankruptcy. A person is considered eligible for a Chapter 13 bankruptcy if his secured debts are less than $750,000 and unsecured debts are less than $250,000. An individual cannot file for a Chapter 13 bankruptcy if he had already been discharged of his debts under Chapter 7, 11 or 12 four years back or was discharged under Chapter 13 bankruptcy within a period of 2 years. Debts such as domestic support payments, student loans and those related to drunken driving injuries, criminal restitution and civil restitution cannot be cleared through Chapter 13 bankruptcy filing. Apart from these, certain taxes are also not discharged through this bankruptcy filing.
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