In order to file Chapter 13 debtor must be able to pay monthly living expenses and pay trustee to consolidate debt. In order to make these payments debtor must have a consistent source of income or at least reasonable prospects of future income. Just like in a Chapter 7 Bankruptcy, individual must live, reside, be domicile, or have a place of business in United States. Additional, debtor must have a regular source of income and amount of their debt may not exceed a certain amount.

What does it mean to have a regular source of income? According to Bankruptcy Code, "any individual whose income is sufficiently stable and regular to enable such individual to make payments under a plan under Chapter 13 Bankruptcy." is considered to have a regular source of income.

Although limits of debt will not apply to most citizens, (the limits are extremely high), it is noteworthy to know figures. The amounts of debt are different every year. The amount is based on and subject to inflation adjustment provided in Bankruptcy Code. Consulting an attorney is best way to know if you are eligible for Chapter 13 bankruptcy.

If you meet all of requirements listed above and you are tired of daily harassment from creditors Chapter 13 may be answer.

4. Start Communicating If you’re like many consumers with outstanding debts, last person you think about speaking with is creditor—the company you’ve been avoiding at all costs.

“Not contacting your debt creditors to discuss and develop a plan for paying, settling or reducing principal amount and/or interest on debt” is one of worst mistakes you can make, says financial expert Ivan Gelfand, president and CEO of Pepper Pike, Ohio-based Ivan Gelfand, Inc., and author of “Your Money, Your Future” (to be published in April).

He also recommends contacting relatives or friends for temporary assistance in reducing debt and making payments, which will lower your outstanding debts’ interest rate. 5. Conquer Denial—Today! Many consumers who recognize—and even accept fact—that they have a spending addiction refuse to address their problems, according to Stroh.

“Budgeting is not fun,” he says, “but dealing with creditors is even less fun. Many people will therefore bury their heads in sand, hoping their problems will go away. Unfortunately, outside of winning lottery or getting a windfall inheritance from a long-lost uncle, budgeting and consulting with a professional counselor are only ways to successfully resolve financial problems.”

--------- Fox Symes assists all Australians discover truth about their debts and how they can rapidly reduce them. There are methods available to Australian public and you can discover how to use these to assist you in reducing your debt with a free phone consultation from Fox Symes. Visit http://www.foxsymes.com.au or contact them directly on 1300 361 204.