The Bankruptcy Abuse Prevention and Consumer Act of 2005 was recently amended, stating that individuals whose income is above the state median are not qualified for Chapter 7 bankruptcy. However, these people can still apply for an even qualify for Chapter 13 bankruptcy. If you are considering Chapter 13 bankruptcy, you must know ahead of time that it is more complicated than Chapter 7 bankruptcy.
You will need to provide a detailed account of your income and expenditures in order to draft a repayment plan. For most people, the court will grant a repayment period of three to five years in which some, but not all, of your debts will be disposed of. The amended bill states that, “Before filing, the debtor get credit counseling at least 180 days before their papers are sent in, their unsecured debts must be less than $336,900 and their secured debts must not be in excess of $1,010,650.”