If you are struggling with debt, one possible solution is to file for Chapter 13 bankruptcy. This is a form of bankruptcy that reorganizes your debt to make it easier to handle. Under Chapter 13, the debtor repays creditors using a 3- to 5-year repayment plan. The benefits of filing for Chapter 13 bankruptcy is that it protects your assets, like your car and your home.
How to Qualify for Chapter 13 Bankruptcy
To file for Chapter 13, you will have to submit the official bankruptcy paperwork to prove that you are qualified. One of the areas that they will check to verify if you will be qualified to apply for bankruptcy is if your income tax filings are current. You have to submit proof that you filed your federal and state income tax returns for the 4 tax years prior to your bankruptcy filing date. You must also have sufficient disposable income to qualify for Chapter 13. You will have to demonstrate to the court that you will have enough income to meet your repayment obligations.
To summarize, you will need the following to qualify for Chapter 13 bankruptcy:
- Submit the official bankruptcy paperwork,
- Submit proof that you filed your federal state and income taxes within the last 4 years, and
- Submit proof that you have sufficient disposable income.
What Can Qualify as Disposable Income?
The revenue you use to pay your debts can come from a variety of sources including:
- Income from self-employment
- Pension payments
- Regular wages or salary
- Royalties and rents
- Social Security Benefits
- Welfare payments
It is also important to know that only individuals can file Chapter 13 bankruptcy and not businesses--the only exception is sole proprietorship. Since sole proprietors share entity with their business, are personally responsible for their business' debts, they qualify to file for Chapter 13.
Get Started on Your Bankruptcy Claim Today!
Filing for bankruptcy is a stressful time, that is why you need the help of an experienced bankruptcy attorney who can guide you through the process. If you don’t want to lose your assets, but want to get rid of your debt, contact our experienced Fort Worth bankruptcy lawyer today. We will be able to assess your situation and determine if you are qualified to file for Chapter 13 bankruptcy.
Huebner Law Firm has helped hundreds of families recover from difficult financial situation. Contact us today at (817) 576-1889 for assistance!