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Bankruptcy – What is Chapter 13? Bankruptcy Proceeding-Reorganization?

Chapter 13 Bankruptcy is designed for an individual who has a regular source of income. Chapter 13 enables the debtor to keep his/her valuable assets, such as houses and cars because it allows the debtor to propose a “plan” to repay creditors over time – usually three to five years.

Chapter 13 is also used by consumers who do not qualify for Chapter 7 relief. At a confirmation hearing, the court either approves or disapproves the debtor’s repayment plan, depending on whether it meets the Bankruptcy Code’s requirements for confirmation.

Issues associated with the preparation and filing of a Bankruptcy proceeding are complicated and time consuming, Parties should speak with an attorney before proceeding. We offer complimentary-no obligation consultations. You are welcome to schedule your consultation by calling us at 212-921-1600.

ELIGIBILITY REQUIREMENTS TO FILE FOR BANKRUPTCY UNDER CHAPTER 13

Any person may file under Chapter 13 if the person:

(1) resides in, does business in, or owns property in the United States,
(2) has a regular income,
(3) has unsecured debts of less than $383,175,
(4) has secured debts of less than $1,149,525.00,
(5) is not a stockbroker or a commodity broker, and
(6) has not been a debtor in another bankruptcy case that was dismissed within the last 180 days on certain technical grounds.

Corporations, partnerships, and limited liability companies may not file under Chapter 13. A husband and wife may file jointly under Chapter 13 if each of them meets the requirements.

Issues associated with the preparation and filing of a Bankruptcy proceeding are complicated and time consuming, Parties should speak with an attorney before proceeding. We offer complimentary-no obligation consultations. You are welcome to schedule your consultation by calling us at 212-921-1600.

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