What are eligibility requirements for filing chapter 13 bankruptcy for a husband or wife in Virginia?
A husband or wife in Virginia must meet certain requirements in order to be eligible for chapter 13 relief. These requirements are set forth in Section 109 of the Bankruptcy Code, Title 11 of the U.S. Code. http://uscode.house.gov/uscode-cgi/fastweb.exe?getdoc+uscview+t09t12+3743+1++%28%29%20%20AND%20%28%2811%29%20ADJ%20USC%29%3ACITE%20AND%20%28USC%20w%2F10%20%28109%29%29%3ACITE%20%20%20%20%20%20%20%20%20 First, Chapter 13 relief is limited to individuals, it is not available to corporations, partnerships or limited liability companies. Only an individual or an individual and his or her spouse can file for chapter 13 relief.
Second, the individual must have regular income. At one time, chapter 13 relief was limited to wage-earners, now chapter 13 relief is available to individuals with income from one of a variety of sources, including social security, self-employment, or a pension. In re: Estus, 695 F.2d 311 (8th Cir., 1982) http://scholar.google.com/scholar_case?case=6254072981636065643&q=regular+income+eligible+%22chapter+13+bankruptcy%22&hl=en&as_sdt=80000000000003 .
Third, there are limitations on the amount of debt that an individual can have to qualify for chapter 13 relief. The debt limitations can change every three years on April 1st, starting on April 1, 1998. http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000104—-000-.html As of the date this was written, the debt limitations for chapter 13 relief are $336,900 in noncontingent, liquidated, unsecured debts and $1,010,650 in noncontingent, liquidated, secured debts. As shown on the Eastern District of Virginia, Richmond Division website, these limitations will increase on April 1, 2010 to $360,475 in noncontingent, liquidated, unsecured debts and $1,081,400 in noncontingent, liquidated, secured debts. http://www.vaeb.uscourts.gov/FILES/20100401_adj.pdf .
With certain exceptions, just as for chapter 7 relief, the individual must complete credit counseling prior to filing bankruptcy. A person who has voluntarily dismissed a prior chapter 13 case following the filing of a Motion for Relief from the Automatic Stay may not be eligible for 180 days, although this requirement has been interpreted in several different ways, including as a temporal requirement or equitably, focusing on the use of the word “following” instead of “after”. In re: Sole, 233 B.R. 347 (E.D. Va. Bkr., 1998), http://scholar.google.com/scholar_case?case=15126117730742998819&q=In+re:+Sole+233+B.R.+347&hl=en&as_sdt=80000000000002 .
You should consult with your Virginia bankruptcy lawyer concerning your eligibility for chapter 13 relief.