If you’ve been facing financial hardships and are unable to pay your bills, you may have looked into the possibility of filing for Bankruptcy. This is a decision that requires much thought and deliberation. If you live in Mesa, AZ and have considered the alternatives to bankruptcy and have come to the conclusion that bankruptcy is your best option, then the right type of bankruptcy may be your next concern. If you have a lot of personal property and do not wan to have it liquidated you have probably looked into Chapter 13 Bankruptcy.

Chapter 13 bankruptcy allows you to get on a repayment plan in order to pay your debtors the money that is owed to them. Some debts can be reduced or eliminated, but you will have to repay some of what you owe. If you are going to pursue Chapter 13 bankruptcy, you need to know whether or not you qualify. Here are some helpful tips to help you know whether or not you qualify for Chapter 13 bankruptcy.

• You have to have sufficient income to prove that you will be able to repay your debtors. The bankruptcy courts will want to know that you are going to be capable of repaying before they put you on a repayment plan via a Chapter 13 bankruptcy. This means that you need to have a job, income from self-employment, pension payments, or some type of stable, ongoing income that will allow you to live up to the terms of your repayment plans as stated in your Chapter 13 bankruptcy filing. If you have no sustainable means of income, it may be impossible to qualify for Chapter 13 bankruptcy.
• You cannot be behind on your taxes. If you have not filed your state and federal income taxes for the past four years, you will not be eligible for a Chapter 13 bankruptcy. The bankruptcy courts will want to see proof of your last four years worth of tax records. Be sure that you have this information. If you don’t have copies, the IRS can send you copies to use in your bankruptcy filing.
• Your debts cannot be too high. If you have personal, secured debts that exceed $1,010,650, you will not be eligible for Chapter 13 bankruptcy in Mesa, AZ, or in any state. This amount is deemed as too high by the bankruptcy courts and will keep you from getting a Chapter 13 bankruptcy. In addition to the secured debts, your unsecured debts (medical bills, credit card bills, etc…) cannot exceed $336,900 in order to qualify for a Chapter 13 bankruptcy.

Keep these facts in mind when you talk with a bankruptcy professional. If you know going into the process that you don’t meet the standards for a Chapter 13 bankruptcy, be completely honest and open about it. A bankruptcy professional can help you find the right help for your situation, even if you do not qualify for a Chapter 13 bankruptcy.