Only individuals can file for Chapter 13 Bankruptcy. This means corporation, limited liability company, partnership cannot file for Chapter 13 Bankruptcy because they are not "individuals". However, sole proprietors can file for Chapter 13 Bankruptcy. Stockbrokers (as defined under 11 U.S.C. § 101(53A)) and commodity brokers (as defined under 11 U.S.C. § 101(6)) and their spouses cannot file for Chapter 13 Bankruptcy.
You must have regular income to file for Chapter 13 Bankruptcy because it involves a payment plan over the period of 3 to 5 years. The income can come from any source like wages, social security, unemployment, child support as long as it is paid regularly and is sufficiently stable for the bankruptcy court.
There is a debt ceiling to qualify for Chapter 13 Bankruptcy. Your and your spouse's, if filed jointly, unsecured debts have to be less than $394,725 and secured debt have to be less than $1,184,200, both of the ceilings applies to only liquidated, noncontingent debts.
Eligibility to File for Chapter 13 Bankruptcy relief does not necessarily mean you will get a Chapter 13 Bankruptcy discharge, which I will discuss in a later blog.
For more information, call Sacramento Bankruptcy Attorney Muoi Chea, serving residents of Sacramento, Stockton, Fairfield, Modesto, Tracy, Roseville, Woodland, CA and nearby cities in Northern and Central California.