When you are neck deep in debt, it is easy to look around and feel as though you are the only one in Jackson struggling with such a problem. Trust us here at the Pond Law Firm when we tell you that you are certainly not alone. Debt can easily overwhelm anyone’s financial lives, leaving them (like you) scrambling to figure out what your best option for getting back on a firm financial footing may be. Personal bankruptcy is an option, yet you may feel a strong obligation to pay your creditors what you can. Fortunately, a Chapter 13 bankruptcy offers you protection while still being able to pay back something.
The question, then, is whether or not you qualify. It is a common misconception that everyone can file bankruptcy under Chapter 13. That is not the case. According to Section 109(e) of the U.S. Bankruptcy Code, you (or you and your spouse jointly) cannot have more than $394,725 in unsecured debt and more than $1,184,200 in secured debt and still qualify for a Chapter 13 bankruptcy. The same is true if you are trying to file for Chapter 13 on behalf of your business (provided your business is unincorporated; professional partnerships and corporations cannot file for Chapter 13).
Furthermore, you cannot qualify for Chapter 13 bankruptcy (or any other form of bankruptcy, for that matter) if you have had a previous bankruptcy petition dismissed during the previous 180 days for any of the following reasons:
- Your willful failure to appear for any hearings related to your case
- Your failing to comply with court orders related to your case
- Your case was voluntarily dismissed after your creditors sought relief through the court to recover property against which they held liens.
You can learn more about Chapter 13 bankruptcy basics by continuing to explore our site.