Chapter 13 Eligibility Attorney | Gladstone, WI

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Home 9 Bankruptcy 9 Are You Eligible for Chapter 13 Bankruptcy

Are You Eligible for Chapter 13 Bankruptcy

Chapter 13 Bankruptcy Attorney in Gladstone, WI

An excellent choice for a lot of debtors is Chapter 13 bankruptcy. It allows people with a steady income to pay their creditors while maintaining all their assets, including homes and vehicles. However, not everybody is eligible to file for Chapter 13 bankruptcy.

Our Chapter 13 bankruptcy lawyer at Miller & Miller Law, LLC in Gladstone helps clients get out of debt. We’ve helped people escape difficult financial situations for 25 years, and we’ll do the same for you. Even though bankruptcy law is always changing, Chapter 13 bankruptcy may still be an option for you. For additional information, immediately speak with one of our consumer bankruptcy lawyers and schedule a free case evaluation. 

Why Choose our Chapter 13 Bankruptcy Law Office?

If you’re already drowning in debt, hiring an attorney may be the last thing on your mind. However, a single mistake in your filing can cause the court to reject your claim. In worst-case scenarios, they might even accuse you of fraud. A knowledgeable attorney can ensure that your petition is free from such simple errors so you can immediately eliminate your debt.

Here are some reasons to choose Miller & Miller:

  • We’re local
  • We deal directly with clients
  • We treat you with respect
  • We follow our mission and vision statement
  • We honor client confidentiality
  • We answer your questions
  • We work efficiently

If you’re ready to get a fresh start, call our law office today to schedule a consultation!

What is Chapter 13 Bankruptcy? 

Chapter 13 bankruptcy enables you to make paying debts more bearable. Let’s compare the two common bankruptcy chapters: Chapter 7 bankruptcy lets you quickly eliminate the debt at the expense of your assets. Meanwhile, a Chapter 13 bankruptcy lets you propose a repayment plan for at least three or five years and potentially keep your property.

If you do not meet the requirements for Chapter 7, Chapter 13 bankruptcy may be your only choice. If your income is too high, you might not pass the means test required for Chapter 7 bankruptcy. An efficient bankruptcy lawyer can assist you in figuring out what’s the best option for you. 

Are You Eligible for Chapter 13 Bankruptcy? 

Only a small portion of your loan may be dischargeable in a Chapter 13 bankruptcy. You must complete all the paperwork and provide documentation in compliance with the following: 

  • Updated with tax returns
  • Adhere to debt limits
  • Must be working with a monthly payment from an employer that covers the obligation, and
  • Involving a person rather than a company 

How Do I Show my Taxes are Updated for Chapter 13?

To continue with the bankruptcy, you must show evidence that you filed your state and federal tax forms for four fiscal years up to filing bankruptcy. The bankruptcy court will dismiss your case if you fail to provide transcripts of your tax record.

How Much Income Should I Have for Chapter 13?

You must demonstrate to the bankruptcy court that you have sufficient earnings to meet your compensation even after deducting certain expenses.

To finance a bankruptcy Chapter 13 plan, you may use the revenue from the sources listed below:

    • Standard compensation
    • Income from independent work
    • Side-line or part-time job income
    • Acquired income from sales or projects
    • Pension funds
    • Social Assistance Insurance
    • Permanent Total Disability (PTD) benefits
    • Incentives such as those for a strike, unemployment, etc.
    • General advantages 
    • Allowances
    • Royalties, rental fees, and
    • Gained income from the sale of property, particularly if that property is a component of your main assets for your firm.

Does My Debt Qualify for Chapter 13?

Suppose the sum of your secured and unsecured debt exceeds a particular limit. In that case, you will not be eligible for Chapter 13 bankruptcy. 

Here are the limits for cases filed between April 1, 2022, and March 31, 2025:

    • $465,275 for unsecured debts;
    • $1,395,875 for secured obligations.

Secured debt is considered when you take the risk of losing a particular piece of an asset that is used as collateral. When it comes to its types, the most prevalent types of secured debt are home loans and auto loans. A debt is also secured if a creditor-like the IRS-filed a lien (notice of claim) against your property.

A creditor cannot seize a specific piece of property because of an unsecured obligation. Credit card debt, legal and medical expenses, past-due utility bills, and department store expenditures are a few examples of debts that are unsecured.

Are Businesses Allowed to File for Chapter 13?

No, businesses generally cannot file for Chapter 13. However, there is an exception for sole proprietors. The liabilities of a sole proprietorship are also the personal obligations of the owner. If that business fails, the owner can file for a Chapter 13 bankruptcy as long as the other qualifications are met.

When a firm needs assistance with debt restructuring, they usually file for Chapter 11 bankruptcy. 

Here are Some of the Reasons Why You Should file a Chapter 13 Bankruptcy 

Most individuals prefer Chapter 7 bankruptcy filing since the debtor is not obligated to settle their loans. However, some people decide to file for Chapter 13 bankruptcy since it offers benefits that Chapter 7 doesn’t provide.

The following is a list of typical grounds for filing a Chapter 13 complaint:

  • Ineligibility for a Chapter 7 dismissal. 
  • Catch up on mortgage or car loan payments
  • Avoid collection actions while repaying non-dischargeable debts like tax debt or past-due support obligations.
  • Keep assets that would otherwise be sold in a Chapter 7 process.

What Does the Chapter 13 Bankruptcy Process Look Like?

As stated in the Chapter 13 process, you are required to completely disclose every area of your financial condition during the legal bankruptcy proceedings, including your earnings and outlays, assets, debtors, and previous dealings. Once you submit your paperwork and any other required materials, pay the fees, and complete the counseling course, the case will officially begin. Without a bankruptcy court extension, you will have at least two weeks to file your Chapter 13 bankruptcy. 

Learn more about Chapter 13 bankruptcy procedure, including who may and cannot file.

Contact our Gladstone County Bankruptcy Lawyers Now!

Managing your Chapter 13 bankruptcy filing is something we have experience with.

Our esteemed law firm offers:

  • Free initial consultations
  • Friendly, approachable bankruptcy counseling
  • Access to state-of-the-art technology for greater ease of filing
  • A commitment to answering your bankruptcy questions and providing you with alternatives to Chapter 7 or Chapter 13 filing
  • Spanish language services; se habla español

People around Wisconsin can get legal advice and credit counseling from our Miller & Miller Law, LCC in Gladstone, Wisconsin, Chapter 13 bankruptcy lawyers attorney. We offer debt relief for individuals who wish to file for bankruptcy protection following the Bankruptcy Code.