If you have found yourself in financial trouble and believe you may need to file for bankruptcy, there are options for you. In such cases, it is best to consult with an experienced bankruptcy attorney who can help you explore those options, so you are making the most informed choice possible for your future and that of your loved ones.
Chapter 13 bankruptcy is one form of bankruptcy that may be very useful to you. This type of bankruptcy allows you to keep your property in return for paying back a portion – or all – of your debts over a certain time period (usually three to five years).
A Chapter 13 provides a bit more flexibility than a Chapter 7 as it allows you to propose your own payment plan based on your monthly income.
When you visit a bankruptcy attorney at the Law Office of Erin Bradley McAleer, we will review your financial situation to determine whether you are eligible for a Chapter 13 bankruptcy.
Chapter 13 Bankruptcy Eligibility
A Chapter 13 bankruptcy requires you to utilize your income to repay some or all of the debt you owe to creditors. You must be able to prove that you can make the Chapter 13 payment obligations, in order to be approved.
Proving you can repay your debts is a matter of showing that court your monthly income – it should be steady and not too low. Generally, a minimum of $125/month in disposable income is required.
Additionally, if your debt is very high, you will be ineligible for this type of bankruptcy. There are two specific numbers identified in the bankruptcy code that determine how high your secured and unsecured debt can be. Your secured debt – or debt that gives a creditor the right to take a specific item of property if you don’t pay the debt – cannot be higher than $1,149,525. Your unsecured debt – or debt that does not have the creditor the right to take a specific item of property if you don’t pay it – cannot be higher than $383,175.
If you meet the eligibility requirements for Chapter 13 bankruptcy, you and your bankruptcy attorney can then work on filing for bankruptcy and proposing a repayment plan to the bankruptcy court.
Get an Initial Consultation
If you are experiencing financial stress and don’t know where to turn or what to do, The Law Office of Erin Bradley McAleer can help. We have been handling bankruptcy cases for many years, and we understand how hard this time can be on you and your loved ones.
Filing bankruptcy does not mean the end of living a free and prosperous life. It can help you, or a loved one, obtain a fresh start, repair your credit, and get you back on track to living a life without debt.
Our friendly and professional attorneys welcome your call today (360) 334-6277 to discuss your particular circumstances.