Are You Eligible for
Chapter 13 Bankruptcy?

If you are here to know Are You Eligible for Chapter 13 Bankruptcy? Then you are at the right place. We will tell you how to qualify for bankruptcy. Firstly, you must have “regular income” and your “liquidated”, “noncontingent” debts must be below the Chapter 13 debt limits. The limits  are currently $419,275 for unsecured debt, and $1,257,850 for secured debt.  These limits adjust every three years, and were last published in February 2019.  Technically speaking, the Chapter 13 debt limits do not apply to debts that are “unliquidated” or “contingent”. But classifying debts under these categories may be challenged.  You must have enough income to afford restructuring these loans through your Chapter 13 plan, if you are trying to save property secured by a lien or a mortgage through your Chapter 13 plan. 

Moreover, Your household’s level of gross monthly income will also determine the minimum length of your Chapter 13 plan. If your household income exceeds the median level of household income for a family your size in the county where you live, then your Chapter 13 plan will need to be five years.  Additionally, your Chapter 13 plan can be as little as three years when your household income is below the median income for a family your size in the county where you live. The money you pay to your unsecured creditors during the life of your Chapter 13 plan, if anything, depends largely on your “disposable income”, which is determined through the results of your Means test.