What is the Maximum Income to Qualify for Chapter 13?

Are you struggling with piling debts? Do you want to start over? Do you plan to file bankruptcy and get the weight off your chest? Chapter 13 can be your way out of this stressful situation.

Chapter 13 bankruptcy is a viable option for debtors who want to pay off their debts. If you have a stable monthly income, you can consider paying your creditors and getting rid of the looming debts. Under this bankruptcy, you won’t need to sell your assets to pay the debts. You get the opportunity to keep the assets while paying the debts as per the repayment plan.

How long does it take to repay the debts under chapter 13 bankruptcy? It takes somewhere between 3 to 5 years. Your repayment plan enables you to pay some of the debts over the stipulated time. Before you begin following this plan, it has to be approved by the bankruptcy court. You have to submit the paperwork stating that will you file your taxes without any delay, your debt does not surpass the prescribed limitations, your income is high enough to afford the monthly payment.

One of the most important factors to consider before you file bankruptcy under chapter 13 is the maximum limit of your debts. If your secured debts are more than $1,184,200 and your unsecured debts are more than $394,725, you cannot qualify for Chapter 13.

What’s the best part about filing bankruptcy under Chapter 13? It allows you to stop foreclosure proceedings. The bankruptcy judge goes through the repayment plan after suspension of the proceedings. You will be able to make payments and pay some of your debts without losing your home.

If you have any questions regarding chapter 13 bankruptcy or need help filing it, reach out to us at the Segaul Law Firm.

Leave a Reply

Your email address will not be published.