If you’ve fallen on hard financial times and are looking for a way to rebound, you may be in the process of figuring out how to qualify for Chapter 13 bankruptcy in Phoenix, Arizona. This could be one of your best options to get back on your feet. Here’s what you should know about the process.
Chapter 13 Bankruptcy Qualifications
To file Chapter 13 bankruptcy, you must be an individual, not a corporation, LLC, or partnership. You can either be self-employed or part of an unincorporated business. There are specific limits on how much debt you can have when filing. You can qualify with up to $336,900 in unsecured debts and $1,010,650 in secured debts. However, note that these numbers change according to the consumer price index so make sure you check on the latest limitations.
Before you can file for bankruptcy, you’ll need to file your tax returns. You may be able to do this one week before your initial meeting with the bankruptcy trustee. You’ll also need to complete a credit counseling course. This should be within 180 days of the time when you file. You’ll be responsible for filing your certificate of completion with the court within 15 days of your filing date.
To qualify for Chapter 13 bankruptcy in Phoenix, Arizona, you cannot have recently filed for bankruptcy. This means you cannot have discharged debt in a Chapter 13 bankruptcy in the last two years or in a Chapter 7 bankruptcy in the last four years. If you have filed Chapter 13 or Chapter 7 in the last 180 days and the petition was dismissed, you probably won’t be able to file again right now. Your case could have been dismissed if you purposefully violated a court order, failed to appear in court, or requested for the court to dismiss your case after a creditor asked to lift an automatic stay.
What to Do if You Qualify for Chapter 13 Bankruptcy in Phoenix, Arizona
If you meet all these requirements, the next step is to file your petition with the Arizona bankruptcy court. Generally, you’ll have to provide four things:
- A schedule of assets and liabilities
- Your schedule of current income and expenditures
- A statement of your financial affairs
- A schedule of executory contracts and unexpired leases
One key step in filing Chapter 13 is submitting a repayment plan to pay off all your required debts. The plan may be over a span of three to five years depending on how your income compares to the state’s median income. You must also have plenty of income to pay off your debt after accounting for your allowable expenses. However, your income can include more than just job wages. It can include social security, unemployment, self-employment income, and income from a spouse.
Get a Free Consultation with the Majors Law Group
After you’ve found out how to qualify for Chapter 13 bankruptcy in Phoenix, Arizona, and decided it’s right for you, you’ll want an experienced law firm at your side. The Majors Law Group handles a variety of bankruptcy cases in Arizona including Chapter 13. We would be happy to offer you a free consultation to talk about your specific circumstances. To get started, call us at (602) 892-1111 today!