Eligibility to File Chapter 13 Bankruptcy

To be eligible to file for relief under Chapter 13, you must generally

1. have a “regular source of income” and

2. not owe more certain amounts of secured and unsecured debt.

eligibility to file chapter 13 bankruptcy

Regular Source of Income

To be eligible to file Chapter 13 a person must have a regular and stable source of income. The source of income may be almost any source of income, such as wages, business income, social security or retirement income.

Amount of Debt

Certain debt limitations apply to be eligible for Chapter 13 (as of 4/1/19). These amounts are adjusted periodically. It is important to note that only “liquidated” and “non-contingent” debt is counted.  In some cases, these debt limitations may be waived.

  • unsecured debts (such as credit cards and unsecured personal loans) – must be less than $419,275
  • secured debts (such as mortgages and car loans) – must be less than $1,257,850