WHAT ARE THE MOST COMMON REASONS FOR A CHAPTER 13 BANKRUPTCY?
The most common reasons for chapter 13 consumer bankruptcy are the need to reinstate a mortgage or secured loan that is in default, to protect non-exempt property, or because a debtor has a previous Chapter 7 or Chapter 13 discharge. Another reason under the amended bankruptcy law for filing under Chapter 13 is if a person is ineligible for Chapter 7 due to income that is larger than the local average income.
Individuals may file chapter 13 bankruptcy petitions if they reside, have a domicile, a place of business, or property in the United States, or a municipality, have a source of regular income, and on the date the petition is filed owe less than $250,000 in non contingent, liquidated, unsecured debts and less than $750,000 in non contingent, liquidated, secured debts. Corporations and partnerships may not file a chapter 13 bankruptcy.
