Chapter 13 is provided for individuals, states Bolingbrook bankruptcy attorney. The person must reside or do business in or own property in the United States. He must have regular income. His secured debt must be under a certain amount and his unsecured debt must be under a certain amount. He cannot be a stockbroker or a commodities broker and he must not have been a debtor in another bankruptcy case that was dismissed within the last 180 days due to certain technicalities. Chapter 13 is available if you fall within those limitations. For example, if you have secured debt that exceeds the secured debt limits or unsecured debt that exceeds the unsecured debt limit, then you might want to consider a Chapter 11 which does not have those limitations.
Chapter 13, however, is approximately 20% or 25% of all bankruptcy cases filed throughout the country. Chapter 13 is a way to reorganize your debt and repay your debt over time while holding your creditors off.
If you are married, you can file a joint Chapter 13 husband and wife. In a joint Chapter 13, the income and expenses of both parties are taken into consideration in determining how much the parties are going to pay per month through the Chapter 13 trustee pursuant to the Bankruptcy Code.
Chapter 13 is a complicated case so I would strongly recommend that you meet with an experienced Chapter 13 bankruptcy attorney to learn your rights. You might just find that the attorney recommends Chapter 7 instead of a Chapter 13. In other cases, the attorney might tell you that Chapter 7 won’t apply and that Chapter 13 won’t apply because you don’t have income to fund a Chapter 13 plan. Once you get all the facts concerning your particular case, you will be able to make an educated decision on whether or not Chapter 13 is a good option for you. If you have regular income and the ability to repay your debt over time, then Chapter 13 is an excellent way to repay either all or a portion of your debt over the next 3 to 5 years while restricting creditors from collection activities.