Chapter 13 Eligibility
Chapter 13 can deal with a great many problems provided you meet the eligibility requirements. In order to file, you must have what the Courts call regular income or wages. Chapter 13 works whether you are self-employed or in the employ of another company. The amount of this regular income varies and is specific to your unique factual and financial situation.
Sometimes your monthly household income is not sufficient to cover the amounts required to be paid and while you may have been eligible to file, if you cannot afford the required amounts, your Chapter 13 case will not be successful. There are of course situations where personal financial circumstances change during the case and you may end up being able to afford the required payment. Your lawyer can advise you every step of the way and with the Steiden Law firm, you are encouraged to ask questions and take an active role in your Chapter 13 case.
Determining Eligibility for Chapter 13 Bankruptcy
If you are having financial challenges and you are in uncharted territory, you don’t have to face it alone. Steiden Law Offices has been helping and representing individuals and families with financial challenges in the Northern Kentucky and Greater Cincinnati areas for 19 years. Bankruptcy is an elaborate statutory structure which can be a minefield for the unrepresented.
Steiden Law Offices can meet with you, explain the process and work with your income, expenses, assets, and liabilities to see if a Chapter 13 can be used to bring financial stability to your family and structure a path towards long term solvency without lawsuits and bill collector phone calls disturbing your life. Call to find out how to get started. The consultation is free but the information will be priceless as you come to understand what a Chapter 13 can do for you.
Before you can file the case, you must participate in and complete an approved Credit Counseling program and submit with the Bankruptcy filing, a certificate of such completion. These approved credit counseling course are done on-line in the privacy of your home for a small fee which may be waived depending on your income and financial circumstances. Your attorney will provide you with a list of all of the approved agencies for the completion of this class. The Credit Counseling Certificate which is provided is valid for 180 days from its issuance.
The Chapter 13 repayment period varies but is typically from 36 to 60 months. You must have enough regular income to make the periodic, installment payments necessary to satisfy the Bankruptcy Code’s requirements. This amount is different in each case. During your intake consultation, once your attorney has all of the information and figures, he can provide you with an estimate of the required Chapter 13 Trustee payment. In many cases, Debtors do not have sufficient income but in many cases they do. The payment is a function of many different factors. During your consultation you will discuss and examine how the Bankruptcy Code protects your assets and income during the Chapter 13 case.
Chapter 13 Dollar Limits
Like each Chapter provided for in the Bankruptcy Code, there are dollar limits to the amount of Debt a Chapter 13 Debtor can have and still qualify for Chapter 13 relief. In order to qualify for Chapter 13, your secured debt cannot exceed the sum of $1,149,525 (up from $1,081,400).
Secured debt would be your auto loan, your home mortgage and any loan for which you have pledged collateral to secure payment. The Bankruptcy Code also limits your unsecured debt not to exceed the sum of $383,175, up from $360,475. Unsecured debt is anything from medical bills, credit cards, civil liability from an auto accident and any debt where you have not pledged tangible assets as security for the loan or debt.
Finding the Best Attorney to Help You Determine Eligibility for Chapter 13 Bankruptcy
If either your secured or unsecured exceeds these amounts, your lawyer can advise you what other options may be available to address your debt situation. Steiden Law Offices prides itself in finding creative solutions for various types of problems and situations which might not fit squarely into a Bankruptcy filing.
If you live in the Northern Kentucky of Greater Cincinnati areas, you owe it to yourself to take advantage of the free confidential consultation and find out how a successful Chapter 13 can help you right your financial ship and set sail for your Fresh Start. If you call and schedule your free consultation, you will be taking your first step to addressing the financial chaos and regaining control of your financial situation.