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.