Only individuals are eligible.
To petition for bankruptcy under Chapter 13, the debtor must file as an individual. If a person is the sole owner of a business or has a partner, Chapter 13 allows the debtor to file as an individual if the debtor has incurred personal liability for those debts.
The debtor must repay creditors.
A Chapter 13 bankruptcy requires the debtor to repay creditors using a three or five year repayment plan. Consequently, the debtor must have sufficient income to pay creditors every month. The debtor must repay priority debts and secured creditors in full and must repay unsecured creditors in an amount equal to what those creditors would have received if the debtor’s non-exempt property (unprotected property) had sold in a Chapter 7 bankruptcy.
The debtor must meet debt limitation requirements.
A debtor is ineligible for Chapter 13 if unsecured debt exceeds $336,900 or secured debt exceeds $1,010,650.