Requirements to File Chapter 13 Bankruptcy

To qualify for Chapter 13 you must be an individual person.  A corporation or partnership cannot file Chapter 13 bankruptcy.  You can be an employee, self-employed or operating a sole proprietorship to file a Chapter 13 so long as you meet certain requirements.  Currently, as of October 23, 2015 to file a Chapter 13, the amount of unsecured debt must be less than $383,175 and secured debts are less than $1,149,525. 11 U.S.C. § 109(e).  These debt limits change from year to year.  A corporation or partnership may not be a chapter 13 debtor.

If you pass the requirements above, there are still a few other requirements that must be met. You cannot file a chapter 13 bankruptcy or any other chapter if, (1) during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court; (2) or the individual failed to comply with orders of the court; (3) or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens.  Additionally, to file bankruptcy you must complete an approved credit counseling course.

Prior to filing for Chapter 13, it is always recommended to speak to a bankruptcy attorney.  There are reported statistics explaining that a person filing Chapter 13 bankruptcy without an attorney will almost never get their bankruptcy plan confirmed.  If the plan does not get confirmed, then there is no way of receiving a discharge of your debt.