Qualifying for Chapter 13 Bankruptcy
For example, if you’re a single person with a household income above the cutoff in the 40,000s, you’ll likely need to file for Chapter 13. Another reason is to save your home, as there are certain things you can do in Chapter 13 that you can’t do in Chapter 7.
However, the main requirement for a Chapter 13 plan is feasibility. You’ll need to be able to pay back your debts within three to five years. This means if you have a mortgage arrearage, you’ll need to pay it off in full within the plan, along with other debts such as IRS debt and certain types of priority debt.
Creating a Plan for Payment
To qualify for Chapter 13, you’ll need to come up with a plan to pay what you can toward what you have to pay and what you want to pay. This plan must be approved by the trustee, and you’ll need to make enough money to pay off your debts in three to five years.
The good news is that what you pay is based on what you can pay, so the amount you owe won’t necessarily be the issue. However, if you’re trying to keep collateral like a house or vehicle that’s way behind, you’ll need to be able to pay off the arrearage in full within the plan.
Free Consultation for Chapter 13 Bankruptcy
If you’re considering Chapter 13 bankruptcy, it’s important to consult with an experienced bankruptcy attorney to determine if it’s the right choice for you. I’m a chapter 13 bankruptcy attorney in Oklahoma City who can help you understand the qualifications for Chapter 13 and create a plan for payment.
To schedule a free consultation, visit oklahomacitybankruptcyattorney.pro.