Chapter 13 Eligibility in Detroit
Are You Eligible for Chapter 13 Bankruptcy?
Before pursuing bankruptcy through Chapter 13, it is wise to discuss your current financial situation and your needs with a trusted Detroit Chapter 13 lawyer from our firm. At The Law Offices of Marshall D. Schultz, we understand how difficult it is to think clearly when you are burdened by debt and financial issues, and we have been counseling clients in similar positions for well over 50 years combined. You can trust that our firm can go the extra mile to answer your questions and work in your best interests.
To be considered an “eligible debtor” anywhere in the U.S., you need:
- A source of regular income as defined by the U.S. Bankruptcy Code
- To be an individual, or an individual and spouse, rather than a business
- To owe under $360,475 in non-contingent, liquidated, and unsecured debt
- Owe less than $1,081, 400 in non-contingent, liquidated, and secured debt
It should be noted that the figures given above for debt are as of late 2012. Speak with our firm for current amounts of debt to qualify for Chapter 13.
“Regular Income” & Non-Contingent Debt
How much regular income you need to qualify is not exorbitant. According to the Bankruptcy Code, what is required is “income sufficiently stable and regular to enable [that person] to make payments under a plan under Chapter 13.” Essentially, you need to have the resources to live up to the terms of your Chapter 13 payment plan.
There are certain limits to the debt you can have in a Chapter 13 bankruptcy which you should be aware of. You should also determine which of your debts are non-contingent. This debt refers to that which is not dependent on a future event in order to exist. This is the debt that may never come about so it cannot be incorporated into a measure of what debt you owe.
Don’t Struggle With Unmanageable Debt!
Similarly, liquidated debt is debt based on a fixed amount that has been agreed upon. Legal claims, for example, which have yet to be completely adjudicated and awarded are not liquidated. Unsecured debt is debt including what you owe on a credit card which is not guaranteed by the debtor with collateral or other property. Secured debt, on the other hand, includes debt such as car-loans or the mortgage on your home which is guaranteed by collateral.
Rules regarding eligibility can be complex, which means you need to speak with a dedicated Detroit Chapter 13 lawyer from our firm who can explain all that goes into filing for bankruptcy. Your needs deserve to be taken into consideration, so let The Law Offices of Marshall D. Schultz answer all your questions and help you get out from under your debt.
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