There are many rules that surround personal bankruptcy filings. In addition to the fact that there is more than one type of personal bankruptcy that Maryland residents may pursue, the rules surrounding eligibility can change based on new legislation. For the best information about bankruptcy and a debtor’s options for seeking financial relief, a consultation with a bankruptcy and debt relief attorney is advisable as this post provides no legal advice.
Generally, though, there are a number of conditions that individuals must meet to be eligible for personal bankruptcy under chapter 13 bankruptcy. This post will introduce some of those requirements, and readers are encouraged to seek out complete information and advice from their own attorneys.
Chapter 13 bankruptcy is not for individuals with excessive debts. It is for individuals with reasonable debts that may be tackled with the debtors’ existing disposable income. The debt limit for Chapter 13 filers changes every three years to account for inflation and also factors in whether the debts are secured or unsecured.
No prior bankruptcies preventing new proceedings
The law requires individuals to allow established amounts of time to pass between bankruptcy proceedings. If an individual has completed a personal bankruptcy in recent years, they may not be able to file for Chapter 13 bankruptcy again until enough time has elapsed. Additionally, if an individual did not complete a previously filed bankruptcy or committed infraction with regard to those proceedings, they may be barred from a future Chapter 13 bankruptcy proceeding.
Completion of requirements
Debtors must meet other conditions in order to file for Chapter 13 bankruptcy, such as completing their credit counseling and submitting repayment plans to their bankruptcy trustees. Knowing just how to approach a bankruptcy proceeding can be hard, and for this reason many debtors work with bankruptcy lawyers to help them along the way. No one has to face bankruptcy alone and legal professionals can offer supportive counsel to those in need.