In order to be eligible to file chapter 13 bankruptcy there are certain requirements that must be met. First of all only individuals can file for chapter 13. In other words corporations, partnerships, business and municipalities cannot file chapter 13, although there are other reorganization chapters which they can file. Although an individual who is self-employed or operating a business can file a personal bankruptcy.
Additionally, 11 U.S.C. ยง 109 places debt limits on chapter 13 as well. Currently a debtor may not have more than $383,175 in unsecured debts and $1,149,525 in secured debt. These amounts are adjusted periodically to reflect changes in the consumer price index and it is important to verify the current limits. The US Courts usually provide the information on their website.
If you are considering filing for bankruptcy please call the experienced attorneys at Fears Nachawati Law Firm to set up a free consultation. Call 1.866.705.7584 or send an email to fears@fnlawfirm.com.