Saturday, November 27, 2010

Qualifications for Chapter 13 Bankruptcy

In order to be eligible for Chapter 13, basic qualifications are:

1) Income and expense test has to be met under what is known as Means Test,

2) Before filing complete the Credit Counseling for Consumers Class. Another class has to be taken after filing and before the discharge,

(3) Have sufficient regular income to meet monthly living expenses allowed by the Chapter 13 Trustee as allowed by the IRS and make a plan payment. If income does not justify or support the Reorganization plan, then trustee will object and the court will not allow confirmation of plan and also not allow BK to proceed,

(4) Have less than $307,675 of unsecured debt, and less than $922,975 of secured debt.(as of April 1, 2004), and

5) Not be a corporation, partnership, stockbroker, or commodity broker.