Filing for bankruptcy is often seen as a last resort — something you do when you’ve run out of other options. But in reality, the decision to file for bankruptcy can be a way to set you off on a better path and allowing your family to recalibrate and leave behind problems that have dogged you for years. When you file for Chapter 13 bankruptcy, you get the chance to restructure your financial obligations rather than liquidate them, as you do in a Chapter 7 filing.
If you have assets you want to protect, such as a house or a car, you may benefit from filing for Chapter 13. But are you qualified to do so? Here’s a look at who can file for Chapter 13 in Delaware.
Who Qualifies to File for Chapter 13 in Delaware?
You must file for bankruptcy in a federal court. There are a few requirements you must meet to file for Chapter 13 bankruptcy, including:
- Your unsecured debts come in below $394,725.
- Your secured debts come in below $1,184,200.
- You did not have a bankruptcy petition dismissed in the previous 180 days.
- You received credit counseling from an approved agency during the previous 180 days.
Partnerships and corporations do not qualify for Chapter 13 filings. You do qualify, though, if you run an unincorporated business or you are self-employed. The court may also adjust the levels for unsecured and secured debts periodically based on the consumer price index.
When you file for Chapter 13 protection, you may be able to halt a foreclosure or address late mortgage payments over time. If you receive approval for your filing, your Chapter 13 plan may carry out over three to five years, which could depend on your monthly income.
Do You Need a Chapter 13 Lawyer in Delaware?
Filing for bankruptcy protection can be a smart way to protect you and those you love. If you need help navigating the Chapter 13 filing, talk to one of our experienced attorneys. You can contact us today to schedule a free consultation.