Chapter 13 Bankruptcy
If you find yourself in a situation where debt resolution is seemingly impossible, then Chapter 13 bankruptcy may be the right solution to your financial problems. Chapter 13 bankruptcy is a way out of insolvency targeted specifically at individuals. There are two forms of bankruptcy available to citizens – liquidation and reorganization bankruptcy. Chapter 13 utilizes the latter technique to pull people out of debt.
What is reorganization?
Reorganization bankruptcy, as opposed to liquidation bankruptcy, provides for the restructuring of one’s debt repayment plan into one that is more easily met by one’s financial means. In liquidation bankruptcy, individuals sell off assets in order to obtain the money owed to creditors. With reorganization, debtors and creditors propose plans that reduce monthly payments, lower interest rates, and extend the debt repayment period. A bankruptcy court oversees all Chapter 13 proceedings.
Am I eligible for Chapter 13 bankruptcy?
There are certain requirements in place for those who wish to file for Chapter 13 bankruptcy. People who do not meet the following conditions may not be allowed to use this form of debt resolution:
- Has enough income to meet one’s payment responsibilities
- Owes secured debts below $1,010,650
- Owes unsecured debts under $336,900
- Has not filed for bankruptcy within the past 180 days and then failed to show in court
Individuals who meet the above stipulations are considered be the eligible for Chapter 13 bankruptcy.
Contact Us
In 2008, there were over 1 million personal bankruptcy cases. If you are in a situation where debt resolution is seemingly impossible, then you should not be afraid to file for Chapter 13 bankruptcy. The Austin bankruptcy attorneys of Slater, Kennon & Jameson, LLP can help you with settling your debts. Please call our offices today at 512-338-1100 to speak with one of our qualified lawyers about your options.