No one wants to end up in a situation where his or her finances feel out of control. Unfortunately, people in California and elsewhere often find themselves struggling with overwhelming debt. Try as they might, they commonly cannot get out from under these burdens on their own. Luckily, Chapter 13 bankruptcy can usually help those who qualify reach more stable financial ground.
When it comes to qualifying for Chapter 13, a number of requirements must be met. In particular, petitioners need to have a steady income. Chapter 13 involves paying creditors back over a course of three to five years, and a regular income is vital for doing so successfully. Individuals will also need to provide tax returns, payments and other financial information to determine their eligibility.
The amount of debt people have will also affect their eligibility. If a person has more than $394,725 in unsecured debt, he or she will likely not qualify for Chapter 13. Similarly, if a person has more than $1,184,200 in secured debt, Chapter 13 is likely not an available option. It is also important to remember that other stipulations for qualifying also apply.
Finding the right method for handling substantial debt can be difficult. Taking the time to explore options like Chapter 13 bankruptcy could help struggling California residents determine whether it could suit their circumstances. It is also wise to consult with legal professionals who are well-versed in this area of law as they can provide insight into specific cases and how certain details may affect a person's financial future.