Find Out More about Chapter 13 Bankruptcy
When dealing with severe financial deadlocks and there is no other way out of the accumulated debt, it seems that the only solution to this is filing for bankruptcy. This process can evolve under various aspects and one of them is described by filing for Chapter 13 which assists those situations where people struggle with huge debts. It is however important to know that there are some criteria according to which you need to become eligible for this chapter.
Let’s see which these criteria are:
- You can not file for this chapter if you are a company or act under a company partnership. Chapter 13 requires for you to be an individual in order to file for it. However groups can benefit from it in cases of emergency.
- You need to have an amount of unsecured debts that total less than $350,000. Unsecured debts are the ones where you have applied for a loan without presenting collateral.
- You need to have an amount of secured debt totaling no more than $1,000,000. With a secured debt you have applied for a loan with the presentation of collateral where valuable assets have been attached to the application to vouch for the loan amounts.
- Another requirement is that you haven’t filed for bankruptcy in the past 6 months during which you have failed to appear in the court of law.
- You must show that you have done everything that stays in your will to get rid of the debt prior to filing for bankruptcy. As such you should have benefited from credit counseling within 180months before you have resorted to this solution.