Posted on: 11 October 2015Share
Are you at a point in your life where you feel completely overwhelmed by debt and where, no matter what you do or how much you pay, you can't seem to make any headway when it comes to paying off your debts? If so, then bankruptcy may be the best option for you.
Keep in mind that bankruptcy is not something that should ever be entered into lightly, nor is it a first resort. However, if you've tried your best to pay your bills and have even looked into other choices to no avail, filing for bankruptcy may be the right decision.
The only way to know for sure is to speak with an attorney, preferably one who specializes in bankruptcy cases like yours. Your attorney may suggest different types of bankruptcy, and among them is chapter 13. Here's how to know if you're eligible for chapter 13 bankruptcy and if it's the best fit for you.
It's Just You
First things first, know that you cannot and should not attempt to file for Chapter 13 bankruptcy if you are doing so to save your business. In fact, you can't even file for chapter 13 bankruptcy as a sole proprietor, only as an individual. If you are hoping to file bankruptcy in the name or good interest of your business, however, all hope is not lost. You can talk to your attorney about reorganizing your debts under a Chapter 11 bankruptcy.
Do understand, though, that owning a business doesn't in and of itself make you ineligible for chapter 13. If you are personally liable for business expenses and debts and/or have other debts you wish to absolve outside of your business, Chapter 13 may be for you. Check with your attorney to be sure.
No Recent Bankruptcies
Bankruptcy is not meant to be a quick fix, nor should it be something people do over and over again instead of changing their ways and learning new and correct financial behaviors.
As such, you will not be eligible for Chapter 13 bankruptcy if you have a long history of this or other types of bankruptcy. More specifically, in order to be eligible for Chapter 13, you must not have filed for Chapter 13 bankruptcy within the past two years or for other types of bankruptcy, such as Chapter 7, in the last four years.
If you can and do meet these basic requirements, there's a good chance you'll be able to successfully file for Chapter 13 bankruptcy, so go ahead and talk with your lawyer to be sure. Click for more information.