If you live in Aurora and are struggling to make ends meet financially, you may be considering a Chapter 13 bankruptcy. An individual must first qualify for a Chapter 13 bankruptcy, in order to file one. In today’s blog, we’ll discuss some ways a person can qualify for a Chapter 13 bankruptcy. For complete details surrounding qualifying and filing a Chapter 13 bankruptcy, consult bankruptcy lawyer Barry Arrington today at 303-205-7870.
You Must Have Enough Income to File a Littleton and Aurora Chapter 13 Bankruptcy
One way to qualify for a Chapter 13 bankruptcy in Littleton and Aurora, is if you have enough income (after deducting allowable expenses) to make payments in a repayment plan. You may use income from self-employment, Social Security benefits, regular wages or salary, or commissions from sales work. All of these income sources are eligible to help fund your Chapter 13 repayment plan. It is always best to speak with a reputable bankruptcy lawyer in more detail about whether your income qualifies you to file a Chapter 13 bankruptcy. Chapter 7 bankruptcy is an alternative to Chapter 13 bankruptcy, if you cannot afford to make monthly payments in a 3-5 year repayment plan.
You Cannot Be a Business and File a Centennial Chapter 13 Bankruptcy
In Centennial, you cannot qualify for a Chapter 13 bankruptcy if you wish to file a Chapter 13 as a business. A business, such as a Limited Liability Company, Partnership, Corporation and even a Sole Proprietorship, cannot file a Chapter 13 bankruptcy as the business itself. However, in most cases, a business owner for one of these businesses can file a personal bankruptcy as an individual and include business-related debt in the bankruptcy.
You’ve Completed Credit Counseling in Highlands Ranch
Another way you qualify for a Chapter 13 bankruptcy in Highlands Ranch is if you’ve completed credit counseling at least 180 days prior to filing a Chapter 13 bankruptcy. If the credit counseling agency developed a debt management plan for you, you must provide a copy of this to the court.
You Haven’t Filed a Chapter 7 or Aurora Chapter 13 Bankruptcy Recently
You cannot qualify for a Chapter 13 bankruptcy if you’ve recently filed a Chapter 7 or Chapter 13 bankruptcy and received a discharge. After filing a Chapter 7 bankruptcy and receiving a discharge, you must wait 4 years to file a Chapter 13 bankruptcy. If you previously filed a Chapter 13 and received a discharge, you must wait 2 years to file another Chapter 13 bankruptcy. If your bankruptcy case was dismissed due to violating court orders, you will be ineligible to file a Chapter 13 bankruptcy.