When you file for419 bankruptcy, it is important that you meet the criterion and requirements required to file under the chapter. When you file for bankruptcy under chapter 13, you do not have to surrender any property, instead, you will have to pay your existing debts under a repayment plan of 3-5 years.
The criterion for filing under chapter 13
- You are an individual and not a business entity. Only individuals are permitted to file for bankruptcy under chapter 13.
- You are not restricted to file due to your previous bankruptcy. If you have already filed for bankruptcy previously, then you cannot get a discharge unless the time period for re-filing has elapsed. Chapter 7 – 4 years. Chapter 13 – 2 years.
- Fulfillment of credit counseling requirement. You must undergo credit counseling within 180 days prior to filing for bankruptcy.
- Your debts are within the permissible limit. You are eligible only if you have less than –
- $419,295 unsecured debt
- $1,257,850 Secured debt
- You have timely filed your IT Returns since you will need to furnish a copy of the returns filed to the trustee.
- The plan proposed by you is able to repay all the debts incurred.
- You have the ability to repay unsecured debts and also pay a certain amount to the creditors.
- You have sufficient and regular income to repay the debts under the repayment plan.