Are there eligibility requirements to file bankruptcy?
In order to file under chapter 13 of the bankruptcy code a debtor must meet certain requirements.
1. A debtor must reside or have a domicile in the United States; and
2. A debtor must be an individual. Which simply means you cannot be a corporation, partnership or some other entity; and
3. A debtor must also have income that exceeds their monthly expenses. The reason for this element is to ensure creditors and other interested parties of the debtor’s ability to stick to the payment plan; and
4. A debtor that owes on the date of filing of the petition, noncontingent, liquidated, unsecured debts of less than $307,675 and non contingent, liquidated, secured debts of less than $922,975. These two figures will change from time to time based on current inflation standards. But presently these figures act as a ceiling for secured and unsecured debt.
In order to file under chapter 7 of the bankruptcy code a debtor has much fewer restrictions. A debtor must meet the residency requirements in order to qualify under chapter 7.
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