When it comes to bankruptcy, you need to go over many different issues. For starters, you need to determine which type of bankruptcy suits your needs best. Everyone is in a unique position and it is essential to make sure you are eligible to file for a particular type of bankruptcy before moving forward with the process.
Chapter 13 bankruptcy helps many people find some breathing room and relief with respect to their finances, but it is not an option that is available to every debtor.
Who can file for Chapter 13 bankruptcy?
The United States Bankruptcy Court for the District of New Jersey provides an overview of Chapter 13 eligibility. According to their website, individuals who have regular income and owe under $336,900 in non-contingent liquidated unsecured debt and under $1,010,650 in non-contingent liquidated secured debt could have the ability to pursue Chapter 13 bankruptcy. Examples of non-contingent liquidated unsecured debt include hospital bills and credit card debt, while non-contingent liquidated secured debt includes auto loans and mortgages.
Can business owners file for Chapter 13 bankruptcy?
It is important to note that business entities, such as partnerships and corporations, cannot file for Chapter 13 bankruptcy. Chapter 13 is only available to individuals, but some business owners who run a business as a sole proprietors can move forward with a Chapter 13 bankruptcy as an individual.
If you are seeking relief through Chapter 13 bankruptcy, make sure you closely review the details of your case and take the right approach to your bankruptcy. Find answers to any of your questions and do not let unnecessary stress prevent you from pursuing financial freedom.