Who is eligible to file for chapter 13 bankruptcy?

Chapter 13 bankruptcy is one of the most popular types, but not everyone is eligible. Consider the main requirements for this chapter.

You cannot file for your business. However, you can file to discharge personal debts if you are a partner or sole proprietor of a company. You cannot have had a bankruptcy dismissed in the last 180 days due to either breaking a rule during the process, or requesting its dismissal after the automatic stay was lifted.  

You cannot have completed chapter 7 bankruptcy in the past four years, or chapter 13 in the past two years. You must undergo credit counseling more than 180 days before you file for bankruptcy. You need to have filed tax returns for the last four years. You should have below $1,081,400 in secured debts and under $360,475 in unsecured debts.

You need to have a steady income so that you can pay back your creditors through a payment plan. If you do not have regular income, consider chapter 7 bankruptcy instead. Your repayment plan needs to pay certain creditors in full. Child support, alimony and tax liens are some examples of debts you have to pay in full. Any secured debts that allow you to keep assets, such as a mortgage, must also be kept current during and after chapter 13 bankruptcy.

Talk to a lawyer to make sure you are eligible for this chapter, as the requirements periodically change.