Financial hardship can be overwhelming and stressful. And while you may feel like there is no way out of it, there are ways to help you regain control and establish a more stable financial picture. Chapter 13 bankruptcy can allow you to pay off debts through a steady and manageable repayment plan, allowing you to regain your financial footing. However, before you pursue Chapter 13 bankruptcy, it’s crucial to make sure that you qualify.
Eligibility requirements for Chapter 13 bankruptcy
To pursue Chapter 13 bankruptcy, there are specific requirements you must meet. Those requirements include:
- Having completed the last four years of tax returns: This can ensure that all financial obligations are accounted for and helps in formulating a realistic repayment plan.
- Completing credit counseling: Before filing Chapter 13, you must undergo credit counseling from an approved agency. Through credit counseling, you can work with a professional to address your financial circumstances, establish budgets and more.
- Devising a repayment plan: This plan should be feasible, demonstrating your ability to comply with the repayment terms and meet the creditors’ needs.
- Having the appropriate income: To qualify for Chapter 13 bankruptcy, your income should be enough for you to make timely payments on your debt while still having enough to cover monthly expenses.
- Not having a prior bankruptcy dismissed: If you’ve had a bankruptcy case dismissed within the last 180 days due to failure to comply or appear in court, you may need to wait before filing Chapter 13.
If you have further questions about meeting these requirements, seeking guidance from a knowledgeable bankruptcy professional can provide you with the clarity and direction you need.
You can give your finances a fresh start
Facing financial challenges can be daunting, but bankruptcy can help you address these challenges head-on and help you get your finances back on track. There is no shame in needing help. It doesn’t take much to fall on hard times and you can find a way forward.