Going through Chapter 13 bankruptcy could be the answer to your financial problems. If you emerge successfully from bankruptcy, you will likely find relief from your creditors and have a chance to rebuild your personal finances. However, a fresh financial start afforded by bankruptcy could be lost if an Ohio court disqualifies you from filing for Chapter 13. Here are some reasons a court might deny your bankruptcy filing.
According to the U.S. Courts website, you must complete credit counseling before your filing can be approved. This applies to any chapter of bankruptcy. You must undergo credit counseling by a legitimate credit counseling agency, and this must be done within 180 days before you file bankruptcy. However, a court might make an emergency exception for you if no approved counseling outfit is available.
Chapter 13 or other bankruptcies may also be denied due to previous court actions. If you had filed bankruptcy within the last 180 days and were denied because you did not appear in court or otherwise failed to comply with an order of the court, your current filing will not be approved. Per Nerdwallet, you also cannot have petitioned the court for Chapter 13 bankruptcy within the last two years or Chapter 7 in the last four.
Other financial factors can cause problems for your bankruptcy petition. In order to qualify for Chapter 13, you need to have a steady income. Your debt must also be within certain limits. Unsecured debt must not go above $394,725. If you possess secured debt, it cannot rise above $1,184,200. In addition, you cannot have delinquent tax filings. You need to be current on filing your taxes.
These may not be the only factors that could derail your bankruptcy petition. One way to look for possible problems is to ask an experienced bankruptcy attorney questions you may have concerning your case.