Chapter 13 is the wage earner’s bankruptcy. There is a cap on both secured on unsecured debt. Individuals with regular income who owe less than $336,900 in unsecured debt (cap on unsecured debt) on the date of filing the Chapter 13 petition, and who have no more than $1,010,650 in secured debts (cap on secured debt) can look to file a chapter 13 bankruptcy. The debts used to calculate these limits must be non-contingent and liquidated (must be for a certain fixed or easily determinable amount). If you exceed either cap, the debtor must look to either a Chapter 7 or a Chapter 11. Often times people who are above the state median, and cannot qualify for a chapter 7 under the means test, will look to filing a chapter 13 bk. In addition, still others, such as owners of real property (whether primary residence or investment property) look to chapter 13 to stop foreclosure sales, get caught up on arrears, and seek to lien strip unsecured mortgages. For more information or to discuss your chapter 13 bankruptcy, please contact us at (877) 276-5084.
