Many people are facing long term unemployment and constant harassment from creditors. People often ask if they can file a Chapter 13 bankruptcy case if they are unemployed.
Yes, You Can File a Chapter 13 Case if You are Unemployed
The question that you need to ask when considering qualification for a Chapter 13 case is whether you have sufficiently regular and stable income to make your Chapter 13 bankruptcy payments. The source of that income can be family support, unemployment compensation, disability benefits, or any other form of income that you receive on a regular basis.
Only Individuals Can File a Chapter 13 Bankruptcy Case
Partnerships, corporations, or other types of business entities are not eligible to file for relief under Chapter 13 of the Bankruptcy Code. Only individuals qualify for Chapter 13 cases. The Chapter 13 bankruptcy case can be filed by a single person which is called an “individual case.” If a husband and wife file a Chapter 13 bankruptcy case, their case is know as a “joint case.” If you are married, it is not necessary to file the case with your spouse. Your spouse’s income and expenses will be considered in the case; however, it is not necessary for both spouses to file.
You must also be under the statutory debt limits to qualify for a Chapter 13 bankruptcy case
In addition to the limitation that only individuals can file a Chapter 13 case, you must owe less than $360,475 of noncontingent, liquidated, unsecured debts and less that $1,081,400 of noncontingent, liquidated, secured debts.