If you do not qualify for Chapter 7 Bankruptcy or Chapter 7 Bankruptcy cannot resolve your financial problems, Chapter 13 Bankruptcy may be an option for you.
First, what are the qualifications for Chapter 13 Bankruptcy.
Unlike a Chapter 7 Bankruptcy, Chapter 13 Bankruptcy does not have an income restriction nor would you lose your assets in a Chapter 13 Bankruptcy if it is not protected by the California exemption. However, with a higher income after applicable deductions or higher nonexempt assets, you will pay back more of your debts but you do not pay their outrageous interest rates.
If you file a prior bankruptcy, Chapter 13 Bankruptcy requires a shorter wait time than Chapter 7 Bankruptcy. If you filed a Chapter 7, you must wait at least 4 years from the date of filing the previous case before you can qualify for a discharge by filing a Chapter 13 Bankruptcy. If you filed a Chapter 13, you must wait at least 2 years from the date of filing before you can qualify for a discharge in Chapter 13.
However, a Chapter 13 Bankruptcy has a debt ceiling whereas a Chapter 7 Bankruptcy does not. Your noncontingent, liquidated, unsecured debts totaling no more than $394,725, and your noncontingent, liquidated, secured debts totaling no more than $1,184,200 as of April 1, 2016.
Because a Chapter 13 Bankruptcy requires monthly payments to your creditors over 3 to 5 years, you must have some income. Income is not limited to wages or business revenues. Unemployment benefits, social security, pension payments, rental income are some examples of income.
For more information, call Muoi Chea, experienced Bankruptcy Attorney serving Sacramento, Stockton, and Fairfield, California and surrounding cities and counties in Northern and Central California including Tracy, Vacaville, Modesto, Elk Grove, Roseville, and Vallejo, CA.