Thomas F. Miles, Attorney and Counselor at Law
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Some factors that can make a person ineligible for Chapter 13

Chapter 13 bankruptcy has a set of requirements that must be met for a person to be eligible to file for bankruptcy under it, if these requirements are not met then the person will be considered ineligible and will not be allowed to do so. These are the factors that can make a person ineligible:

Business entity: Chapter 13 bankruptcy can only be filed by individuals or by spouses jointly. Companies and business corporations are considered business entities that possess limited liability and thus are considered ineligible for Chapter 13 bankruptcy. A business owner as a sole proprietor or owners in the form of a partnership can file for person debts. Barred by prior bankruptcy:  A person cannot file for Chapter 13 bankruptcy if he is already barred by prior bankruptcies in the form of chapter 13 in the last two years or chapter 7 in the last 4 years. A previous bankruptcy petition was dismissed: If a past bankruptcy case was dismissed in the last 180 days due to either of the following two reasons: The debtor did not appear in front or if he went against a court order, The debtor made a request of the court to dismiss the case when a lender asked the court to end an automatic stay, under these conditions the person will be considered ineligible to file for Chapter 13 bankruptcy.

Credit counseling requirement: A certificate must be provided which displays the fact that a reputed credit counseling agency has provided counseling to the filer within the last 180 days. If the agency provided the filer with a debt management plan, then this must be shown to the court. All the paperwork with the proper document must also be provided. High debts above the limit: Chapter 13 bankruptcy has a debt limit which must be adhered to if a filer hopes to apply for it, the filer must have unsecured debt of below $336900 and secured debt below $1010650. Filed income tax: The filer must have filed their income tax returns for the last four years to be considered eligible and must provide proof. Sufficient income level: The filer must have a certain income level that allows for them to oblige their debt payments after tax is deducted.

Filing for Chapter 13 bankruptcy can be very complex and confusing thus it is highly recommended that you consult an experienced attorney near you.

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