This blog recently discussed how someone considering debt relief options may qualify for Chapter 7 bankruptcy. Another personal bankruptcy option is chapter 13 bankruptcy and it is important to know how to qualify for Chapter 13 bankruptcy as well.
Chapter 13 bankruptcy is different than the Chapter 7 liquidation bankruptcy option in that it allows the filing party to keep their property and repay creditors according to a repayment plan worked out with the bankruptcy court. The repayment plan will usually last 3 to 5 years and if the filing party abides by the plan fully, they will usually be able to discharge any debts not addressed by the plan and enjoy a fresh financial start.
To qualify for Chapter 13 bankruptcy, the filing party must have a reliable source of income they are able to repay their debts according to the repayment plan with. It is possible to covert either type of personal bankruptcy in some instances provided the filing party qualifies for the type of bankruptcy protection they are seeking. There are additional requirements to qualify for Chapter 13 bankruptcy such as previous bankruptcy history, the amount of debt the filing party has, tax filing status and other considerations it is important to be familiar with if you are considering bankruptcy as an option.
Personal bankruptcy protections are available to help struggling consumers which is why it is important that they are familiar with those options and how to qualify. Bankruptcy options can sometimes be misunderstood so it is useful to have all your questions answered and know what option is best for you and your situation.