Chapter 13 bankruptcy has special eligibility requirements.
First, it is available only to individuals. Corporations or LLC’s can’t reorganize under Chapter 13.
Second, the filer must have regular income in excess of their current living expenses.
Third, the filer’s debts must total less than the caps for both secured and unsecured debt.
The debt limits are divided between unsecured debts and secured debts.
Secured debt cap $1,395,875
Unsecured debt cap $465,275
If your debts exceed either cap, you can’t file Chapter 13.
These debt limits become effective April 1, 2022.
Read more about Chapter 13
Image used under Creative Commons license courtesy of Pixabay.
