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Understanding Income Eligibility for Chapter 13 Bankruptcy

Posted By Allmand Law Firm, PLLC || 18-Apr-2013

Income Eligibility for Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a repayment plan approved by the court. This can be a suitable option for debtors who want an affordable payment plan for their debt obligations based on what they earn. Yet, consumers may be under the impression that only earned wages or a form of employment is the only income that qualifies for this option. The main idea is being able to provide stable or sufficient income that will allow you to follow the repayment schedule to complete your case successfully.

When you are considered for Chapter 13 bankruptcy your income is an important aspect. You should have enough income to satisfy financial obligations from two angles: your debts and necessary living expenses. As long as your income can meet such obligations outlined in your repayment plan, the bankruptcy court can give approval for you to begin payments. But, while many who apply for this chapter have a job, there are various forms of income that can be used to fund your Chapter 13 plan.

Aside from regular wages or annual salary, earnings from seasonal work, commission sales, alimony/spousal support, royalties, property sale proceeds, workers compensation, disability benefits, pension payments, public benefits (government assistance or welfare), Social Security benefits, self-employment income and unemployment benefits may all be considered as valid forms of income for Chapter 13 repayment plans. In some cases, you may qualify for the plan if you are married, but have income coming into the household in the name of your spouse. If a spouse is unemployed, but files a joint petition with a working spouse, you may still qualify.

Contact an experienced bankruptcy attorney to review more about Chapter 13 bankruptcy income eligibility.

Categories: Chapter 13 Bankruptcy
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