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Who is eligible for Chapter 13 Bankruptcy?

First of all, businesses are not eligible for Chapter 13 - you must be either an individual or a married couple filing jointly. If you want to file bankruptcy for your business (including an LLC, Corporation, or partnership), you must seek Chapter 11 reorganization. Additionally, individuals or married couples must have a stable and regular income to file for Chapter 13, which includes wages, salary, regular self-employment income, commissions, pension payments, public benefits, child support payments, royalties, and so on. Further, you must have disposable income - in other words, you must have enough income left over after you have paid for necessities to fund a repayment plan. Additionally, all of your disposable income must be devoted to your repayment plan for 36 months (or more). To be eligible for Chapter 13, you must also pay back 100 percent of certain types of debt (such as car or mortgage payments), and any budget that you propose to pay back your debts must be reasonable. Finally, Chapter 13 eligibility requires that your debts not be too high.