Chapter 13 bankruptcy rules

The chapter 13 bankruptcy rules are no that complicated, learn what you need to know within the next 10 minutes. First off, if you decide to file for chapter 13 bankruptcy then make sure you follow all the rules from the start. If you brake any rules then your chapter 13 filing could be seriously jeopardized not to mention criminal.

One easy way out of all this is to use a good lawyer and tell him/her everything, all assets, all transfers of money or assets you have done to relatives and friends in the last year or given to charity, whatever. Do not think your creditors will not find out about any assets or transactions you have failed to bring up, they could quite easily check this by checking public records and use other sources.

Rules for Filing Chapter 13

Video - Rules for Filing Chapter 13.



The main chapter 13 bankruptcy rule is that you can qualify for chapter 13 filing if you are not able to pay your debt. The rules also apply if you are not able to pay down or pay off your debt within a reasonable timeline, typically over the next 5 years living a normal life, excluding some debts like your mortgage or other secured debts. This means that if you are struggling under your debt, spending all your income and borrowing money from friends and family or even from your 401k, just to keep up with payments but unable to ever repay the debts that just keep on piling up, you can qualify for a chapter 13 bankruptcy.



Other rules to consider has to do with the total amount of debt that you have and if your income is more or less than the state median income. If your income is more than the state median, you are likely to enter a 60 months repayment plan rather than a 36 month plan.

Under chapter 13 bankruptcy rules, those that have previously received a discharge in a bankruptcy 7,11 or 12 filed in the last 4 years can not again eliminate debts in a new chapter 13 filing. This rule also applies if you filed for a chapter 13 bankruptcy in the last 2 years and eliminated debt. So what is the point then to file a new case you might ask? Well other chapter 13 rules still apply and you can reorganize and pay your creditors in full in a repayment plan over time.