When you realize that there is no way out of debts, bankruptcy might be the logical conclusion. Though, people prefer Chapter 7, very few manage to qualify for it. The other option for people is filing for bankruptcy under Chapter 13. However, lawyers of Dallas based bankruptcy law firm Recovery Law Group, say that it is essential that you qualify for the same.
The eligibility criteria for Chapter 13 bankruptcy include:
- Only individuals and not business entities can file for Chapter 13 bankruptcy.
- If you had previously filed for a Chapter 13 or Chapter 7 bankruptcy and got a discharge, you cannot proceed with Chapter 13 bankruptcy before two years and four years respectively.
- It is mandatory to attend credit counseling
- There is a limit capped on your debts in case of Chapter 13 bankruptcy filing in Dallas. You should not have more than $1,010,650 secured debt and $336, 900 unsecured debt. These figures, however, change every three years factoring for inflation.
- Filing of state and federal income tax returns is mandatory.
- The repayment plan should include all required debts.
- Sufficient disposable income must be present to pay the debts through the repayment plan proposed.
In case you fulfill all the above-mentioned criterion, it is pertinent that you consult with experienced bankruptcy lawyers at888-297-6023 before pursuing the plan further.