Who is eligible to file for Chapter 13 bankruptcy?
Financial hardship is a difficult problem that many Missouri residents face. It can be isolating and painful to carry on one’s own, and when mounting bills become too much to handle, it can be difficult to know where to find help. For many individuals and families dealing with this challenging issue, bankruptcy and debt relief attorneys are available to help.
It is important that readers understand that different debt and financial issues can be dealt with through varying legal and financial strategies. Chapter 13 bankruptcy may be an option for some, but this post does not suggest that it will help all debtors. Legal advice should be sought from knowledgeable bankruptcy attorneys about case-specific questions.
What is Chapter 13 bankruptcy?
Chapter 13 bankruptcy is a legal process that is available to individuals. It allows people to organize and prioritize their debts, and to create plans to repay what they owe to others. Not everyone, however, qualifies for Chapter 13 bankruptcy. It is important that a debtor understands the rules of the process before they begin to file.
Who can file for Chapter 13 bankruptcy?
Chapter 13 bankruptcy has specific eligibility requirements. Individuals who have previously filed for bankruptcy or who have received bankruptcy discharges may need to check their eligibility to ensure that they are not time-barred to file again. Additionally, individuals who use Chapter 13 to manage their debts must have sufficient income to pay their creditors. If an individual’s debts are too great, they may be blocked from using Chapter 13 bankruptcy, and individuals who seek bankruptcy protections must have filed the tax returns to be eligible.
This post provides an introduction to an important legal tool that some debtors may be eligible to use to alleviate their unmanageable financial obligations. Guidance and support on how to pursue Chapter 13 and other bankruptcy and debt relief options can be sought from local bankruptcy attorneys.