Previous posts here have discussed bankruptcy options and how particular bankruptcy routes may be beneficial to an individual or a business. Yet, sometimes the intricacies of bankruptcy can leave some Wisconsin residents forgetful of the big picture. For example, who, exactly, can file certain types of bankruptcy? This is a critical question, albeit preliminary, the answer of which could shape an individual’s approach to finding debt relief.
In order to qualify for Chapter 13 bankruptcy, for example, certain requirements must be met. First, the filer must not be a business. In other words, the petitioner must be filing for Chapter 13 in an individual capacity. Second, the petitioner must not be barred from filing by prior bankruptcies. Under the law, an individual who had debts discharged via a Chapter 13 bankruptcy within the last two years cannot file again. Likewise, an individual who discharged debts under a Chapter 7 bankruptcy within the last four years cannot file for Chapter 13 bankruptcy.
Fourth, debt liabilities must fit within a certain amount. Chapter 13 bankruptcy is only available to those who have less than $336,900 in unsecured debt and less than $1,010,650 in secured debt. Also, an individual must be able to show sufficient income to satisfy a debt repayment plan under Chapter 13.
This is just a sampling of the requirements that must be met in order for an individual to qualify for Chapter 13. Those facing overwhelming debt may want to get more information about the available bankruptcy options in Wisconsin.
Source: FindLaw, “Who Can File for Chapter 13 Bankruptcy?” accessed on Feb. 22, 2016