Would you qualify for Chapter 13 bankruptcy?

| Feb 22, 2018 | blog |

If you are currently experiencing financial problems, you definitely aren’t the only one in New Jersey thrown off course. Whether treating credit like cash was a main factor or you experienced unexpected medical expenses or job loss, it’s not uncommon for minor financial strain to turn into major financial crisis in a short amount of time. The good news is most financial problems are solvable. The key to success often lies in knowing what options are available.

Turning to experienced guidance to determine the best path to take in a particular situation is quite helpful when trying to right your financial ship in turbulent waters. Chapter 13 bankruptcy often proves to be a useful tool; however, in order to apply, you must meet all the qualifications.

Check to see if you’re eligible for immediate debt relief

There are various types of bankruptcy, so if Chapter 13 is not the best choice for you, you can explore other options as well. The following information pertains directly to Chapter 13 and may help you determine if this financial tool may be a light at the end of your tunnel:

  • If you are seeking debt relief as a business owner, then you can immediately eliminate this from your choices. Only individuals or spouses filing jointly may apply for Chapter 13 bankruptcy.
  • If you already received debt relief through Chapter 13 bankruptcy within the past 24 months, you are disqualified from filing again. In addition, if you received a Chapter 7 bankruptcy discharge within the past four years, that also makes you currently ineligible Chapter 13.
  • In order to qualify for Chapter 13, you must receive court-approved debt counseling.
  • Your unsecured debt must not exceed $336,900 and your secured debt must be $1,010,650 or less to qualify for Chapter 13 bankruptcy.
  • You must not have any unpaid federal tax debt for the past four years to be eligible for this form of debt relief.
  • You must be able to show proof of steady income.

There are other specifications and qualifications regarding eligibility for Chapter 13 bankruptcy. To save time and avoid stress, you may want to thoroughly research the process and enlist the assistance of someone well versed in bankruptcy law.

Where other New Jersey residents have turned for support

Some people hesitate to reach out for help when it comes to financial crises because they are embarrassed or worry about social stigmas attached to bankruptcy. Others understand that strong legal support can often help obtain swift and successful solutions to even the most complex financial problems.