Debtor Eligibility

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Debtor Eligibility

 
§109 Who may be a debtor

(a) Notwithstanding any other provision of this section, only a person that resides or has a domicile, a place of business, or property in the United States or a municipality, may be a debtor under this title.

(e) Only an individual with regular income that owes, on the date of filing of the petition, non contingent, liquidated, unsecured debts of less than $394,725 and non contingent, liquidated, secured debts of less than $1,184,200 or an individual with regular income and such individual's spouse, except a stockbroker or a commodity broker, that owe, on the date of the filing of the petition, non contingent, liquidated, unsecured debts that aggregate less than $394,725 and non contingent, liquidated, secured debts of less than $1,184,200 may be a debtor under Chapter 13 of this title.

(f) Only a family farmer or fisherman with regular annual income may be a debtor under chapter 12 of this title.

(g) Notwithstanding any other provision of this section, no individual or family farmer may be a debtor under this title who has been a debtor in a case pending under this title at any time in the preceding 180 days if-

(1) the case was dismissed by the court for willful failure of the debtor to abide by torders of the court, or to appear before the court in proper prosecution of the case; or

(2) the debtor requested and obtained the voluntary dismissal of the case following the filing of a request for relief from the automatic stay provided by section 362 of this title.

(h)

(1) Subject to paragraphs (2) and (3), and notwithstanding any other provisions of this section other than paragraph (4) of this subsection, an individual may not be a debtor under this title unless such individual has, during the 180-day period ending on the date of filing of the petition by such individual, received from an approved nonprofit budget and credit counseling agency described in 111(a) an individual or group briefing ... that outlined the opportunities for available credit counseling and assisted such such individual in performing a related budget analysis.

§109 Explained

§109(a) is pretty self explanatory, but it is just the general qualification. Further sections become more specific and can determine whether a person may enter a chapter 7 dissolution or be required into a chapter 11 or chapter 13 reorganization plan.

§109(e) these are the financial debt loads that bankruptcy courts will allow for someone to be able to file a chapter 13 case and reorganize their debts.

§109(f) clarifies that commercial fishermen and family farmers have their own unique chapter 12 to file for bankruptcy under. Chapter 12 bankruptcies aim to help family farmers continue operations while they settle their debts.

§109(g) imposes a limitation on the general eligibility of a debtor, it essential puts a 180 day hold to prevent a debtor from abusive filings to take advantage of the Code. Like mentioned above, this is a general provision other provisions such as §727(a)(8) places a restriction on a debtor from being able to obtain a discharge if the debtor has had successful discharge within 8 years before the ate of the current filling of the petition.

§109(h) this is a requirement that all debtors must complete before their filing (with some exceptions), but the purpose is so that the debtor can get some education on their options outside of seeing an attorney. The Smith Law Firm will provide the names of qualified credit counseling agencies and file your certificate with the court upon your bankruptcy filing.

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