There are a few different reasons to file for Chapter 13. Probably the first one is if you are not qualifying for the Chapter 7.
Jan. 12, 2023
New Bankruptcy Means Test Numbers Starting April 1, 2016
The U.S. Trustee Department is releasing new Census Bureau Median Family Income By Family Size numbers to be used in all Chapter 7 and Chapter 13 bankruptcy means test calculations for cases filed after April 1, 2016. Above are the numbers for all U.S. states and territories.
The three common triggers for bankruptcy are unemployment, medical expenses, and divorce. Unemployment can trigger bankruptcy, which is pretty straightforward.
The trustee has a duty to conduct due diligence, and that basically means reviewing the documents that are filed by the debtor and then holding a hearing called a Section 341 hearing in which the trustee asks some standard questions of the debtor.