Are you interested in filing Chapter 13 bankruptcy in Philadelphia? While this may be something you are considering, you need to determine if you are eligible to file.
Before we get into the finer details of eligibility, it is important to note that businesses such as corporations cannot file for Chapter 13 bankruptcy. However, if you own a business you still have the ability to file for Chapter 13 as an individual.
Do you have Sufficient Disposable Income?
To be eligible for Chapter 13 bankruptcy, you must be able to show the court that you have enough income, after allowable expenses, to make a monthly payment plan. The plan has to be in an amount that you can afford or it may not be the best move to file.
You can use a variety of income sources to fund a Chapter 13 bankruptcy, including:
- Salary or regular wages
- Income from seasonal work
- Self-employment income
- Pension payments
- Social Security benefits
- Workers’ compensation benefits
- Disability benefits
- Unemployment benefits
- Welfare payments and other public benefits
- Child support
Do you have too much Debt?
You will not be eligible for Chapter 13 bankruptcy if you have more than $383,175 in unsecured debt. The same holds true if you have more than $1,149,525 in secured debt.
These numbers can and will change from time to time, with the next adjustment set to take effect on April 1, 2016.
Answers to your Questions
Even though you may believe you are eligible or that you are not eligible for Chapter 13 bankruptcy, you will not know for sure until you review your entire situation.
For example, many people do not realize that Income tax debt can be included in a Chapter 13 plan.
To ensure that you don’t make any mistakes and that you only file when ready, hire an experienced and knowledgeable bankruptcy attorney to show you the way. A qualified legal professional can review your situation, keeping one eye on your eligibility, and advising what is best for your situation. If it is found that you are eligible for Chapter 13 bankruptcy, your attorney can then help you file.
Over the years, we have helped thousands of people file for bankruptcy. Contact us if you have questions about your eligibility or need assistance moving forward.