When you think about your financial situation, you may wonder how you ended up in such a difficult spot. Unfortunately, money issues can affect anyone unexpectedly, even if you have a regular income. You may have ended up in a situation in which your expenses began to exceed your income, and even living paycheck-to-paycheck in efforts to stay on top of things is not an option.
Still, you may wonder whether you could qualify for financial help. You may think that you are not eligible for bankruptcy because you do earn a regular income, but fortunately, that is not necessarily the case. Chapter 13 bankruptcy is known as the wage earner’s bankruptcy for this reason.
Is this type of bankruptcy right for you?
Like with other types of bankruptcy, Chapter 13 has certain qualifications that you must meet. In addition to having a steady income, you will also need to meet the following stipulations:
- You do not have unsecured debts that exceed $394,725.
- You do not have secured debts that exceed $1,184,200.
- You are an individual and not trying to file Chapter 13 for a business — not allowed.
- You have not voluntarily dismissed a bankruptcy case within the last 180 days due to creditors seeking court assistance in recovering property.
- You cannot have a bankruptcy dismissal from the court within the last 180 days because you failed to appear in court or otherwise did not comply with court orders.
If you do not feel that any of these specific requirements will pose a problem to you and your qualification, you may want to gain more information on Chapter 13 and how it could help your financial affairs.
Should you file?
The decision to file for bankruptcy is a personal one. You may want to first explore other options to see if something else is more fitting, but you may also want to remember that bankruptcy is one of the most reliable debt relief options mandated by law. Other debt relief methods do not have the same regulations as bankruptcy, which makes it easier for individuals to create scams using them.
Even if you have not yet fully decided that filing for bankruptcy is the path you intend to follow, you may still want to gain more information on Chapter 13. Discussing your particular details with a New York bankruptcy attorney may allow you to gain some clarity on your situation.