Eligibility for Chapter 13 Bankruptcy

eligibility for chapter 13 bankruptcy

Regular Source of Income

  • A regular and stable source of income.
  • The source of the income may be almost any source of income so long as it provides a sufficient amount to fund a chapter 13 plan.
  • Contributions of income from family members and non-filing spouses may also be used.

Regular Source of Income

  • Unsecured debts must be less than $383,175
  • Secured debts must be less than $1,149,525.
  • These amounts are adjusted periodically.
  • Only “liquidated” and “non-contingent” debt counted.
  • In some cases, debt limitations may be waived.

Prior Dismissal with Prejudice

  • Generally prohibited from filing for chapter 13 if previously filed a chapter 13 case and it was dismissed with prejudice, usually for 6 months, and the time period has not yet expired.
  • May though request that the Bankruptcy Court “reduce the prejudice period” so to permit another filing.

Mandatory Credit Counseling Course

  • Must receive credit counseling from an approved credit counseling agency and obtain a certificate of completion.