Navigating the Complexities of Chapter 13 Bankruptcy
- What Is Chapter 13 Bankruptcy?
Navigating the financial maze of debt can be overwhelming, and Chapter 13 bankruptcy offers a viable path to debt relief and financial restructuring. We provide a comprehensive guide to understanding eligibility, debt limits, and the overall process.
- Eligibility Requirements for Chapter 13 Bankruptcy
To qualify for Chapter 13 bankruptcy, individuals must meet specific criteria set forth by federal guidelines. These include:
- Debt Limitations: The total allowable debt for both secured and unsecured debts cannot exceed $2,750,000 as of June 21, 2022.
- Regular Income: Debtors must demonstrate a steady income to make consistent payments under a Chapter 13 repayment plan.
- Credit Counseling: Mandatory completion of a credit counseling course approved by the United States Trustee Program.
- Understanding Secured and Unsecured Debts
- Secured Debts: Backed by collateral, such as a home or car. Examples include mortgages and auto loans.
- Unsecured Debts: These lack collateral and include credit card balances, student loans, and medical bills.
- Benefits of Chapter 13 Bankruptcy
- Debt Consolidation: Combines multiple debts into a single monthly payment.
- Debt Elimination: Discharges eligible unsecured debts upon completion of the repayment plan.
- Retention of Assets: Allows debtors to retain assets like a home or car while repaying debts.
Seeking Guidance from Experienced Bankruptcy Attorneys
Friscia & Associates offers experienced guidance through the intricacies of Chapter 13 bankruptcy. Contact us at (973) 500-8024 or (212) 960-8308, or submit your contact information, for personalized legal counsel.