March 2019

05 Mar Can I File Chapter 13 if I am Self Employed?

Can you file a Chapter 13 debt consolidation case if you are self employed? Yes, you can but expect the process to be more difficult, burdensome and expensive than it would be if you are a salaried employee. Chapter 13 works best when your income and expenses are steady and consistent. When you file Chapter 13 you will be proposing a repayment plan to the bankruptcy judge. Your plan modifies the rights of your creditors and it must meet all the requirements of the bankruptcy code. When you file your case, a Chapter 13 trustee will be assigned to verify the information you submit and to investigate your plan to make sure that you are contributing all of your disposable income into the plan. Your creditors will get notice of your plan and they will review it for possible objections as well. If you are a salaried employee, your income is what it is and your expenses are usually consistent month to month. When you are self employed, however, your income may go up and down, and your expenses may also vary.
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