Misconceptions About Chapter 13 Bankruptcy
When most people file for bankruptcy, they file under Chapter 7 of the U.S. Bankruptcy Code. However, there is another alternative. Chapter 13 is available to debtors who have slightly different circumstances than the average bankruptcy filer, and while there are a few more obligations to filing Chapter 13, it may benefit you more than a Chapter 7 bankruptcy. Myth: A debtor must have very low income in order to file Chapter 13. False – a Chapter 13 filing is actually referred to as a wage earner’s plan. You must have enough income to be able to make monthly payments on your plan – without it, a Chapter 13 plan is not viable. If you have very low income, a bankruptcy professional will likely counsel…
