Law Office of David A. Kubat

Call Toll-Free: 866-654-8160

Local: 206-545-8394

Considering Bankruptcy?

Law Offices of David A. Kubat, is dedicated to providing effective representation and offers Personalized Bankruptcy Law Expertise.

Over 30 Years of Experience

Free Consultation

Do I Qualify for Chapter 13 Bankruptcy?

You bankruptcy attorney might advise you to file Chapter 13 bankruptcy if you are ineligible to file Chapter 7 bankruptcy because your income is too high or you have assets that you want to keep.

U.S. bankruptcy law allows an individual to file Chapter 13 bankruptcy if:

  • your unsecured debts are less than *$383,175 or
  • your secured debts are less than *$1,149,525
  • you are a self-employed individual or are an employee
    *These amounts are periodically adjusted for inflation. The next adjustment will be April 1, 2016.

Additionally, to qualify for Chapter 13, you will have to show the bankruptcy court that you will have enough income, after subtracting certain allowed expenses and required payments on secured debts such as a car loan or mortgage, to meet your repayment obligations. For more information about allowable expenses speak with Bankruptcy lawyer David Kubat.

You can use the income from the following sources to fund a Chapter 13 plan:

  • regular wages or salary
  • income from self-employment
  • wages from seasonal work
  • commissions from sales or other work
  • pension payments
  • Social Security benefits
  • disability or workers' compensation benefits
  • unemployment benefits, strike benefits, and the like
  • public benefits (welfare payments)
  • child support or alimony you receive
  • royalties and rents, and
  • proceeds from selling property, especially if selling property is your primary business.

Your plan must repay certain debts in full, or the judge will not approve it. For information on which debts have to be repaid in Chapter 13 speak with Bankruptcy lawyer David Kubat.

Chapter 13 bankruptcy discharge is complicated, but more debts can be discharged in Chapter 13 bankruptcy than in Chapter 7. Your debts are likely to be discharged if you've:

  • Made all your child support and alimony payments
  • Have not received a Chapter 13 discharge in the previous two years or Chapter 7,11, or 12 discharge in the previous four years
  • Completed a court-approved financial management course

Bankruptcy discharge relieves you of your obligation to repay the debts listed on your bankruptcy plan. Certain debts can't be discharged including:

  • Mortgage payments
  • Child support and alimony
  • Certain taxes
  • Student loans
  • Debts resulting from death or injury while you were driving under the influence of drugs or alcohol
  • Some Traffic Tickets, Criminal Fines or court ordered Restitution
  • Debts obtained through fraud

You cannot file Chapter 13 bankruptcy if you had a bankruptcy dismissed in the previous 180 days because you failed to appear in court or you voluntarily quit bankruptcy because your creditors tried to repossess your property.

Under Chapter 13 bankruptcy, the debtor repays creditors with a three- to five-year repayment plan. If your income is below the Washington median income, you will likely be approved for a three-year repayment plan. While you're going through Chapter 13 bankruptcy, you make a single monthly payment to your bankruptcy trustee who divides payments among your creditors and sends out the necessary payments.

When your bankruptcy attorney files your Chapter 13 bankruptcy petition he must also file:

  • A schedule of your assets and liabilities
  • A schedule of your income and expenditures
  • A schedule of your executory contracts and unexpired leases
  • A statement of your financial affairs
  • Proof of your income, if you were paid in the 60 days preceding your bankruptcy filing
  • A statement listing your monthly net income and expenses
  • Your latest tax return

Call Mr. Kubat at 206-430-1515 or toll free at 866-654-8160 to schedule a free consultation.

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Contact Information

David A. Kubat

2634 Thorndyke Avenue W., Suite 201
Seattle, WA 98199
Phone: 206-545-8394
Toll-Free: 866-654-8160