Macco & Corey P.C.

Am I eligible for Chapter 13?

Am I eligible for Chapter 13?

If you want to file bankruptcy in New York, it is vital that you make sure you submit the right type of bankruptcy. For consumers, this generally means filing Chapter 7 or 13. Chapter 7 has income limits that you may not meet. In addition, if you have assets you want to protect, Chapter 13 allows for more protection. So, what are the requirements to file Chapter 13?

There are limits for this type of bankruptcy as well, but not income limits. Qualification for Chapter 13, according to the U.S. Courts, is dependent on your debts. Your secured debts cannot be over $1,184,200, and your unsecured debts cannot be over $394,725. Do note these amounts do change from time to time as the consumer price index changes, so always verify the limits before filing.

You can be self-employed or have an unincorporated business, but you cannot be a partnership or corporation. In addition, you cannot file Chapter 13 if you filed bankruptcy within the previous 180 days and the court dismissed it due to failure to appear in court, failure to comply with court orders or your creditors sought relief. Finally, you must receive credit counseling from an approved agency.

Beyond that, you will have to file all the appropriate paperwork and comply with all the rules of the court. Generally, the recommendation is that you get legal representation due to the complexities of the bankruptcy laws and the importance of adhering to court rules, but you do have the right to file yourself or pro se. This information is for education and is not legal advice.