Personal Bankruptcy Options In Chapter 13

Getting the most from personal bankruptcy filings in Chapter 7 & 13

According to 11 U.S.C. §109(a), "Notwithstanding any other provision of this section, only a person that resides or has a domicile, a place of business, or property in the United States, or a municipality, may be a debtor under this title."

To qualify for chapter 13, individuals must maintain a steady stream of income and owe no more than $269,250 in non-contingent, liquidated unsecured debts and no more than $807,950 in secured debts.

Additional requirements to file personal bankruptcy chapter 13 include:

  • Debtors must submit all assets and debts to the bankruptcy estate;
  • Debtors must attend a "Meeting of the Creditors" conducted by a trustee and provide sworn testimony subject to cross examination;
  • Creditors are allowed to question debtors under oath and review all schedules filed; and
  • A court hearing for confirmation is required before creditors are bound by the plan.

After confirmation of a personal bankruptcy plan, debtors must continue making timely payments, or should expect a motion to dismiss. If payments are not made, the court often grants conversions to chapter 7 for personal bankruptcy liquidation.

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