Who is eligible for Chapter 13 Bankruptcy?

In California, anyone who is an individual, self-employed, a partnership, or a corporation is eligible to file for Chapter 13 bankruptcy. This type of bankruptcy is designed to provide debt relief to people who have a regular source of income, but have difficulty paying their debts. The first step to filing for Chapter 13 bankruptcy is for the individual to qualify for the type of bankruptcy by passing a “Means Test”. This test is used to determine if an individual’s income is high enough to allow them to repay some of their debts and still maintain a reasonable budget. If individuals meet the requirements of the Means Test they may be eligible to file for Chapter 13 bankruptcy. Once individuals are found to be eligible, they will need to work with their attorney to prepare a repayment plan. This plan takes into consideration the individual’s current financial situation and outlines how much of their debt will be paid back each month, and over what period of time. Once the plan is approved by the court, creditors will be compensated in accordance with the plan and the remaining debt will be discharged. In order to be eligible for Chapter 13 bankruptcy in California, debtors must have a regular source of income, pass the Means Test, and submit a repayment plan that has been approved by the court. By meeting these requirements and working with a qualified attorney, individuals can receive debt relief and regain control of their finances.

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Who is eligible for Chapter 13 Bankruptcy?

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