Bankruptcy can be a very real process through which Texans can obtain relief from overwhelming financial obligations. Whether an individual seeks bankruptcy through Chapter 7 or Chapter 13 of the bankruptcy code, an individual must meet certain federal requirements before relief can be granted. Those who fail to do so can wind up having their bankruptcy petition denied, meaning that they will then be forced to continue to struggle with their financial predicament for some time to come.
Chapter 13 bankruptcy, whereby individuals enter into repayment plans for a given period of time in exchange for the discharge of some debts, has many requirements that must be met. To start, Chapter 13 bankruptcy is only available to those individuals who have unsecured debts that are less than $394,725 and secured debts that are less than $1,184,200. Also, Chapter 13 bankruptcy is only available to those who had a bankruptcy petition dismissed within the last 180 days for a number of reasons, including failure to appear or failure to comply with court orders.
Another requirement to qualify for Chapter 13 bankruptcy is to undergo credit counseling within 180 prior to the petition’s filing. The hope is that this counseling will leave an individual fully informed about his or her debt relief options and how they can affect his or her credit moving forward. In some instances, this requirement can be foregone, but this is usually only the case when there are few approved credit counseling agencies in an individual’s geographic area.
There are many moving parts to a Chapter 13 bankruptcy petition, which is why an individual needs to start off on the right foot when seeking to pursue bankruptcy protection. To best ensure that one is able to successfully navigate the bankruptcy process, Texans who find themselves overwhelmed with debt may want to work closely with a professional who is experienced and successful in this area of the law.