Guide to Chapter 13 Bankruptcy

Chapter Thirteen Bankruptcy is frequently referred to as the "wage earners bankruptcy". Unlike chapter 7, assets under this plan are not liquidated to pay-off creditors. Instead, a repayment plan is established by the bankruptcy courts, and agreed to by creditors and the debtor, in order to pay off debts over a given time frame.

Benefits of Filing Chapter 13

There are several advantages to filing for chapter 13 bankruptcy over other types of bankruptcy. The most notable of these is the ability for debtors to save their home from foreclosure. Filing a chapter 13 bankruptcy can stop a potential foreclosure, and allows a debtor to keep his or her home. Given the recent economic pressures facing homeowners, chapter 13 is a great help when mortgage payments become too difficult to maintain.

Chapter 13 Eligibility

In order to file under chapter 13 bankruptcy law, several guidelines must be met. Some of the general requirements are listed below:

1. Employed individuals, or self-employed operating and unincorporated business
2. Unsecured debt (such as credit cards and personal loans) must be less than $336,900
3. Secured debts (home loans, auto loans) must be less than $1,010,650
4. No prior bankruptcy petition was dismissed in the previous 180 days due to debtors failure to appear in court.
5. Credit counseling must have been completed in 180 prior to filing chapter 13

Only a qualified bankruptcy lawyer can determine if your financial situation warrants filing chapter 13 bankruptcy. Consulting with a bankruptcy attorney should be the first step for anyone considering filing bankruptcy to get relief from overwhelming debt.

• If you need help with filing bankruptcy, click here for a Free Case Review with a Bankruptcy Lawyer near you.

Other Chapter 13 Resources:

• Chapter 13: US Courts
• Chapter 13 on Wikipedia
• Bankruptcy Lawyers
• Chapter 13 Information