Can anyone file for chapter 13?
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Specifically, are there any criteria one would have to meet in order to "qualify" for filing chapter 13? I know ch 13 allows for reorganization and repayment. I have an appoinment with an attorney for filing. I'm afraid they will tell me I don't qualify for chapter 13 because I have no real debt, i.e. credit cards, auto loans, etc. I'm considering filing chapter 13 to stop foreclosure on my house.
Can anyone file for chapter 13?The requirements to "qualify" for filing chapter 13 are listed in section 109 of the bankrutpcy code, available online at http://www4.law.cornell.edu/uscode/html/...
*you must live in the United States or have property in the United States
*you must have "regular income"
* you must owe less than $250,000 in "unsecured" debt (e.g. credit cards) and less than $750,000 in "secured" debt (e.g. mortgages, car loans)
*you must go through credit counseling before you file bankruptcy (this is a formality that your attorney will explain. It usually takes about 2 hours)
There is no requirement that you have credit card debt or auto loans. In any case, your mortgage is probably for tens of thousands of dollars and is more than enough debt for you.
You could have trouble filing for bankrutpcy if you filed for bankruptcy previously within the past 6 years.
One of the other answers suggested filing several times. This is no longer possible due to a change in the law in 2005. The first time you file for bankruptcy, you have an "automatic stay" that prevents your creditors from trying to collect any debts while the court processes your bankruptcy. This means that your mortgage lender can't foreclose. If your first bankruptcy is dismissed (thrown out) and you file again, then the automatic stay only lasts 30 days, after which the lender can foreclose. If you file a third time, there is no automatic stay, so it doesn't stop a foreclosure.
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