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Not everyone will qualify for Chapter 13 bankruptcy

A common misconception may exist in the minds of some Tennessee residents regarding the bankruptcy process. That misconception relates to the ability of an individual to file for protections under the bankruptcy process. While in some situations it may be true that a person can file for some form of bankruptcy, because the different types of bankruptcy employ different requirements, that person may not qualify for all forms of bankruptcy.

This post will look into the requirements that a person must meet in order to file for Chapter 13 bankruptcy. While this post does provide useful information for individuals who may want to pursue this form of bankruptcy, it should not be read as legal advice. A bankruptcy attorney is a good resource for any reader who needs help getting their own bankruptcy filing underway.

In order to file for Chapter 13 a person must first not have a prior Chapter 13 bankruptcy discharge in their history in the prior two years. Chapter 7 bankruptcy discharges in the prior four years will also bar them from pursuing Chapter 13 bankruptcy. Also, if the person had a personal bankruptcy matter dismissed in the prior 180 days, then they may not be eligible to pursue Chapter 13.

Business entities cannot use Chapter 13 bankruptcy and neither can individuals whose debts are below the required threshold for the process. People who want to pursue Chapter 13 must file the tax returns and also must comply with credit counseling rules in order to be eligible. Other requirements may exist regarding a person's ability to file for Chapter 13 bankruptcy and therefore consultation with a trusted attorney is important for those who wish to begin the process.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
Phone: 423-624-4002
Fax: 423-624-0509
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