Understanding Chapter 13 Bankruptcy Disqualifications

Are you considering filing for Chapter 13 bankruptcy but need to know if you meet the eligibility criteria? Acclaim Legal Services is here to guide you through the process. This article will discuss the factors that may disqualify you from filing for Chapter 13 bankruptcy and provide valuable insights to help you explore alternative debt relief options.

Key Factors That Can Disqualify You from Chapter 13 Bankruptcy:

1. Excessive Debts: Chapter 13 bankruptcy is primarily designed for individuals with a steady income who can repay a portion of their debts over time. You may only qualify for Chapter 13 bankruptcy if your debts are within the allowable limits ($2.75 million).  We will evaluate your debt relative to your ability to pay your “best efforts” into the Chapter 13 plan.  Most clients are only required to pay their debts back at a reduced rate and the balance of those debts are eligible for a legal discharge at the completion of the Chapter 13 plan.  Call to speak to one of our experienced bankruptcy attorneys to explore your options.
2. Insufficient Income: To qualify for Chapter 13 bankruptcy, you must have a regular source of income that allows you to create a feasible repayment plan. This income could include income contributions from another family member, payments from a renter, social security or disability income, etc.  Our qualified attorneys can help you determine what income is required for your specific case.  You may be disqualified if your payment is insufficient to meet the repayment requirements or demonstrate a reliable ability to repay. Our attorneys can assess your financial situation and recommend suitable alternatives.
3. Previous Bankruptcy Discharge: If you have received a Chapter 7 bankruptcy discharge within the past four years or a Chapter 13 bankruptcy discharge within the past six years, you may be ineligible for Chapter 13 bankruptcy discharge.  However, you can still FILE a Chapter 13 to receive full court protection (i.e. stop a home foreclosure, stop a vehicle repossession) while you under the repayment plan. Our knowledgeable attorneys can evaluate your circumstances and guide other available debt relief options.
4. Incomplete or Inaccurate Documentation: Filing for Chapter 13 bankruptcy requires comprehensive documentation, including income records, tax returns, and a complete list of debts and assets. Failure to provide accurate or complete information may result in disqualification or case dismissal. At Acclaim Legal Services, we can assist you in preparing and organizing the necessary documentation to increase your chances of a successful bankruptcy filing.
5. Noncompliance with Court Orders: If you have previously failed to comply with court orders or failed to complete a court-approved credit counseling course, it can adversely affect your eligibility for Chapter 13 bankruptcy. Our dedicated team can help you understand the court requirements and ensure you meet all necessary obligations.

Knowing the factors that may disqualify you from Chapter 13 bankruptcy is crucial to making informed decisions about your financial future. If you believe you may be disqualified or require debt relief assistance, the experienced attorneys at Acclaim Legal Services are ready to help. Contact us today for personalized guidance tailored to your unique situation. Let us navigate the complexities of bankruptcy law and explore alternative solutions to achieve financial stability.

If you're burdened by debt and considering Chapter 13 bankruptcy, Acclaim Legal Services is here to help. Our dedicated team of bankruptcy attorneys will provide the expert guidance and legal support you need to achieve a fresh financial start. Contact us today to schedule a confidential consultation and take the first step toward regaining control of your financial future.

Remember, you don't have to face the challenges of bankruptcy alone. Let Acclaim Legal Services be your trusted advocate throughout the Chapter 13 process.