Is Chapter 13 The Ideal Solution For Your Financial Woes?

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One of the biggest benefits of declaring bankruptcy under chapter 13 is that applicants keep their property even after filing. In addition, this option offers a more affordable repayment plan that lasts for several years. However, chapter 13 has strict requirements that debtors must meet for a successful application. So, if you're considering this option to solve your financial woes, speak to a bankruptcy attorney to know whether you're eligible. You may have a right to declare bankruptcy under this chapter if you meet the following criteria.

You Have Personal or Family Debts

You may have a better chance of qualifying for chapter 13 if you have personal or family debt. In this case, you can file alone or jointly with your spouse. However, if you have business debts, you need to contact a lawyer to know whether there is a possibility of declaring bankruptcy under this chapter. Note that there may be instances when you can file bankruptcy, even if you're a business entity. This includes a situation when you may have accrued huge personal debts when operating your business. But, even in this case, you can only declare bankruptcy in your name and not your company's. Hence, discussing your situation with an attorney is the best way to know about your right to file this chapter.

You Have Not Declared Bankruptcy Recently

Your chapter 13 application might not go through if you had declared bankruptcy recently. This is especially the case if the court dismissed your application during proceedings for failing to comply with court orders. Also, you may not be ineligible if you requested the court to halt your case after your creditors complained that you had violated bankruptcy laws. In these instances, your attorney might ask you to put off plans to file chapter 13 until you may have a right to file. That said, they can recommend other bankruptcy types that will be effective for your situation.

You Have Completed the Relevant Courses

You must provide a certificate proving that you have completed the relevant financial courses authorized by the court when rendering your application. Therefore, your attorney will ask you to take the courses immediately after you start facing challenges when repaying your debts. Ultimately, this will enable you to complete your course before the time you plan to declare bankruptcy.

 A chapter 13 bankruptcy application might waste your time and resources if you're not eligible. This is why you need to talk to an attorney from a reputable chapter 13 bankruptcy law firm if you plan to declare bankruptcy under this chapter. Doing so will let you know whether to continue with your plan or choose another bankruptcy type. 

For more information, contact a local lawyer.