Who Can File Chapter 13
Chapter 13 bankruptcy is commonly referred to as debt adjustment bankruptcy. It is a way for certain people to create a debt repayment plan that creditors are forced to accept.
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Individuals
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Chapter 13 is only available for individuals, including employed, unemployed and self-employed people. Chapter 13 is not available to partnerships, limited liability companies or corporations.
180-Day Rule
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You can not file for Chapter 13 if you have previously filed within the last 180 days and your petition was rejected because of your own fault (such as failure to appear in court or file necessary paperwork).
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Credit Counseling
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Within 180 days before filing for Chapter 13 you must participate in credit counseling with an approved agency. You can obtain a list of the approved agencies online or by calling your local bankruptcy courthouse.
Secured Debt Limits
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You are not eligible for Chapter 13 if you have secured debts exceeding $1,010,650. For example, if you own a home with an outstanding mortgage of $1,300,000, then you are ineligible for Chapter 13.
Unsecured Debt Limits
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You are also ineligible for Chapter 13 if your unsecured debts exceed $336,900. So, if you owe $400,000 on a personal, unsecured loan or on credit cards, then you are ineligible for Chapter 13.
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