Chapter 13 Bankruptcy is designed to allow a sole proprietor, a person operating an unincorporated business, or a person who does not quality under the "means test" for Chapter 7 Bankruptcy, to restructure their debt.
The Chapter 13 Bankruptcy procedure mandates that all petitioners undergo approved credit counseling and that a trustee oversees the repayment of the debt. Individual debtors may benefit more using Chapter 13 Bankruptcy under some circumstances.
There are some limitations to Chapter 13 Bankruptcy. Corporations and Partnerships cannot be a Chapter 13 debtor. In addition, an individual's secured debts must be below $1,081,400.00 and unsecured debts must be below $360,475.00.
Due to potential complications involved in bankruptcy proceedings, we strongly encourage potential clients to be represented by an attorney. If you are interested in filing Chapter 13 Bankruptcy, give us a call today and we will have an attorney within our network represent you.