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Qualifying for a Chapter 13 bankruptcy

No one is immune from struggles with debt, so yours should not cause you to feel alienated from others in Gastonia. Oftentimes, if your liability troubles seem to be compounding, personal bankruptcy might be your best option for getting back on top of your financial situation. Yet many have incorrect notions as to their bankruptcy options. This is evidenced by the fact that many come to us here at Sigmon & Henderson, PLLC believing that a Chapter 7 bankruptcy is all that is available to them. Yet to pursue such a case, you have to meet the qualifying criteria. 

If you do not, do not worry; contrary to popular belief, a Chapter 7 bankruptcy is not your only option. You can also seek a Chapter 13 bankruptcy (often call a "wage-earner bankruptcy). The difference between the two is that unlike with a Chapter 7, your debts are not discharged under a Chapter 13 bankruptcy case. Rather, collection efforts against you are ceased while you develop a repayment plan that allows you to settle your debts over a period of three to five years. 

As is also the case with a Chapter 7 bankruptcy, however, you also have to qualify for a Chapter 13. According to information shared by the Administrative Office of the U.S. Courts, your secured and unsecured debts must be under $1,184,200 and $394,725, respectively, in order to qualify. In addition, you cannot qualify for a Chapter 13 bankruptcy (or any other form of bankruptcy, for that matter) if you have had a previous bankruptcy case dismissed in the previous 180 days for your failure to appear for proceedings. The same is true if you have yet to seek qualified credit counseling during the same time frame. 

You can learn more about the many different forms of bankruptcy by continuing to explore our site.  

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Sigmon & Henderson, PLLC
518 S New Hope Road
Gastonia, NC 28054

Phone: 704-269-6374
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