To file for Chapter 13 bankruptcy, you or the debtor must have a regular source of income. Mostly, in this type of bankruptcy, the bankruptcy court will order the use of your disposable income for the repayment plan.
Other businesses such as big corporations and LLCs are not eligible for Chapter 13. Stockbrokers and other commodity brokers are also prohibited to file under Chapter 13, even if the debts are for personal use.
Most private individuals and/or other businesses can file under Chapter 13 if they have a regular monthly source of income, which can sustain the repayment plan. In the process of filing, they must disclose all of their sources of income and submit it to the bankruptcy court within fourteen days after filing a petition. A regular source of income can also come from different sources such as a social pension, social security payments, unemployment compensation, or income from your business or properties you’ve sold.
Apart from this, you also need to be current or up-to-date on your tax filings. Part of the requirements for filing under Chapter 13 is to submit proof of filed state and federal tax returns for at least the past four years. The bankruptcy court may delay or even dismiss your petition if you fail to submit proof or evidence of tax returns.
Since the petition under Chapter 13 can be tedious, make sure to call or ask for the help of your trusted Wheeling Chapter 13 Bankruptcy lawyers. They can help determine if you are qualified for filing under Chapter 13. They can also help you assess the repayment plan if it is suitable for your current financial situation.