Who is eligible for Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy is an option available to Virginia residents who are struggling with debt. In order to qualify for a Chapter 13 Bankruptcy filing, the individual must meet certain criteria. Firstly, the individual’s total debt must fall within certain limits. In Virginia, these limits are set by the United States Bankruptcy Court. As of 2020, any individual with unsecured debt higher than $419,275 or secured debt higher than $1,257,850 will not be eligible to file for Chapter 13 Bankruptcy. Additionally, the individual must have a regular source of income. This means that individuals without any form of steady income will not be able to file for Chapter 13 Bankruptcy. This source of income must be sufficient enough to allow the individual to make a payment plan as agreed in court. Lastly, the individual must have filed all of the necessary paperwork. The paperwork includes filing a petition, uploading financial documents, filing proof of credit counselling, and completing a questionnaire about the individual’s finances. It is important to note that not all individuals who wish to file for Chapter 13 Bankruptcy will be eligible. Therefore, it is essential to research and fully understand all the criteria that must be met before attempting to file.

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Who is eligible for Chapter 13 Bankruptcy?

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