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 $1,149,525
Unsecured debt cap $383,175
If your debts exceed either cap, you can’t file Chapter 13.
The debt limits are adjusted every three years in April. The next adjustment is scheduled for April, 2016.
Read more about Chapter 13
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