Skip to Content

Don’t make the mistake of waiting too long to file for bankruptcy. Chapter 13 bankruptcy can help you stop foreclosure on your home and protect your property from liens, but how do you know if you are eligible? Take a look at the following criteria for filing Chapter 13 bankruptcy before consulting with your bankruptcy attorney:

  • You Have Not Had a Bankruptcy Recently.

Prior bankruptcies can render you ineligible for Chapter 13 bankruptcy for a set amount of time. If you have not been discharged from Chapter 13 bankruptcy within the last two years or Chapter 7 bankruptcy within the last four years, then you may be eligible to file for Chapter 13 bankruptcy.

  • Your Debts Are Within the Proper Range.

A Chapter 13 bankruptcy, also known as a wage earner’s plan, restructures your debts into a court-supervised repayment plan spanning three to five years. The limit for unsecured debt is $360,475, and the limit for secured debt is $1,081,400, although these amounts are readjusted every three years to account for changes in the market. If you have enough disposable income to pay off all of your debts within this time frame, then you may be eligible for Chapter 13 bankruptcy.

  • You Plan to File Bankruptcy as an Individual.

Chapter 13 bankruptcy is one of the most common types of filings for individuals—businesses are not eligible to file under Chapter 13. However, if a business owner is filing individually and is personally liable for the debts of his or her business, then Chapter 13 bankruptcy may still be an option.

For more information about the eligibility requirements of Chapter 13 bankruptcy and how they relate to your specific case, consult with an experienced bankruptcy attorney at Cutler & Associates, Ltd. We’ve been providing top-quality bankruptcy services in Chicago and the surrounding areas for more than 25 years.


The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.