Who qualifies to file Chapter 13 bankruptcy?


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Individuals and couples filing taxes jointly may qualify for Chapter 13 bankruptcy, according to the AllLaw website. Businesses are ineligible and can only file for a Chapter 11 option. Nolo says that stockbrokers and commodity brokers are unable to file Chapter 13, even if their debts are considered nonbusiness.

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Who qualifies to file Chapter 13 bankruptcy?
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Full Answer

AllLaw also emphasizes that a sufficient and steady income is required so a regular payment plan can be arranged. There is a limit on how much unsecured debt a filer can have, states FindLaw on its website. As of 2015, that amount is $336,900. FindLaw also reports that income tax returns must be current, and a credit counseling requirement must be fulfilled before Chapter 13 can be filed.

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