Most people are under the impression that it is easy to file for chapter 13 bankruptcy Santa Fe Springs and that filing a chapter 13 bankruptcy Santa Fe Springs is an option which is available to everyone. The truth is that bankruptcy is a complicated area and it can be difficult to know just where you stand and whether or not you are eligible to file chapter 13 bankruptcy Santa Fe Springs, or wherever.
Businesses Can't File for Chapter 13 Bankruptcy
A business, even a sole proprietorship, cannot file for Chapter 13 Santa Fe Springs in the name of that business. Businesses are steered toward Chapter 11 bankruptcy when they need help reorganizing their debts.
If you own a business, however, you can file for Chapter 13 bankruptcy Santa Fe Springs as an individual. You can include in your Chapter 13 bankruptcy case business-related debts for which you are personally liable. There is one exception to this rule: Stockbrokers and commodity brokers cannot file a Chapter 13 bankruptcy case, even if they want to discharge only personal debts.
Your Debts Must Not Be Too High
You do not qualify for Chapter 13 bankruptcy if your secured debts exceed $1,149,525. A debt is secured if you stand to lose specific property if you don't make your payments to the creditor. Home loans and car loans are the most common examples of secured debts. But a debt might also be secured if a creditor -- such as the IRS -- has filed a lien against your property.
In addition, for you to be eligible for Chapter 13 bankruptcy, your unsecured debts cannot exceed $383,175. An unsecured debt doesn't give the creditor a right to take a particular piece of property. Most debts are unsecured, including credit card debts, medical and legal bills, back utility bills, and department store charges.
You Must Be Current on Your Income Tax Filings
To file for Chapter 13 Santa Fe Springs you will have to submit proof that you filed your federal and state income tax returns for the four tax years prior to your bankruptcy filing date. If you need some time to get current on your filings, the court can postpone the proceedings. Ultimately, however, if you don't produce your returns or transcripts of the returns for those four years, your Chapter 13 case will be dismissed.
Before filing a chapter 13 Santa Fe Springs, or wherever, there are a few things you need to do. The primary one is to determine whether bankruptcy is the best choice for you. If you are in trouble financially, there are a number of things you can do to get yourself back on track. Bankruptcy should be considered your last resort and should not be taken lightly.
Filing a chapter 13 bankruptcy Santa Fe Springs is a serious matter and although some people decide to handle the matter on their own, it makes more sense to hire a professional bankruptcy attorney so that your case can proceed smoothly and achieve the desired results.
No comments:
Post a Comment