Try as we might, sometimes financial hardship falls on us without warning. As a resident of Texas, what are your options if you find yourself deep in debt?
Today we will discuss one: Chapter 13 bankruptcy. This type of bankruptcy offers relief to many individuals. It is important to know if you qualify for the aid, though.
What are the requirements for Chapter 13 bankruptcy?
Forbes takes a look at the requirements for filing for Chapter 13 bankruptcy. You must fit these requirements to apply for relief. Only certain people in specific situations pass the initial requirements.
First, you cannot be a business entity. You can only file for Chapter 13 bankruptcy as an individual. Business entities have other types of bankruptcy to choose from. These options cater to the needs of a business rather than one single person.
Next, you must fulfill a credit counseling requirement. An approved credit agency must provide you with counseling about debt. This needs to happen 180 days before you file, at the least.
Can past bankruptcies count against you?
You cannot have a past bankruptcy in recent years. If you filed for Chapter 7 bankruptcy four years before you file for Chapter 13, the court will bar you. What if the courts dismissed a previous attempt at filing for bankruptcy? If it happened less than 180 days before your new attempt, the court will bar you from trying.
There is a debt limit for Chapter 13 filings. You must have less than $336,900 in unsecured debt. You must also have less than $1,010,650 in secured debt. Finally, you must have a proposed plan to pay off these debts. You also need a steady source of income to make this possible.