Are you eligible to file Chapter 13? Learn the requirements in order to file under Chapter 13 of the bankruptcy code.
Eligibility Requirements for Chapter 13
- A debtor must live in the United States.
A debtor must be an individual. Chapter 13 bankruptcy is not available for a corporation, partnership, or other entity.
A debtor must have reliable income that exceeds their monthly expenses. This extra income, known as disposable income, must exist in order to work out some form of repayment plan to which the debtor's creditors will agree.
A debtor's unsecured debts (e.g., credit cards, personal loans) must not exceed $360,475 and a debtor's secured debts (e.g., home loans, automobile loans) must not exceed $1,081,400.
In the previous 180 days, a debtor cannot have had a previous bankruptcy dismissed.
In the previous 180 days, a debtor must have attended a credit counseling course from an approved agency.
There is a different set of requirements in order for a debt to file under Chapter 7 of the bankruptcy code.
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