A Chapter 13 bankruptcy is designed for those individuals who either cannot qualify under a Chapter 7 or have an asset(s) that cannot be protected in a Chapter 7 (usually a home). In a Chapter 13 debtor is required to propose a “plan” whereby they make an affordable monthly payment to a trustee with the goal of repaying all or a portion of their debt.
Do I qualify for a Chapter 13?
For a Chapter 13 bankruptcy, you must have a stable income with sufficient disposable income to make monthly payments to reduce your debt; you must have no more than $1,010,650 in secured debt, and no more than #336,900 in unsecured debt. These amounts are adjusted periodically to reflect changes in the consumer price index. Chapter 13 will also stop collection action against you.