There are several requirements to be fulfilled to be eligible for chapter 13 bankruptcy.
These are stated as follows;

Chapter 13 is not for Businesses

Businesses, irrespective of their nature, are not allowed to file in chapter
13. Even the sole proprietorship can't file in this chapter. For businesses chapter 11
is defined in United States bankruptcy code. They are also allowed to file in
chapter 7 i.e. if liquidation of their assets
is required.



Incase of your own business where you are sole proprietor only then you are
allowed for chapter 13 filling by an individual
and all debts that are related to your buisness are included in the petition.
In case this business titles stockbrokers or commodity brokers, even if you
include non-business personal debts you are not allowed to file in chapter 13
bankruptcy.

Chapter 13 Requires Regular and Stable Income

Chapter 13 bankruptcy requires you to have a regular source of income that
is stable. The income shouldn't necessarily be the same each month. The point
is that you must be earning steadily. Stable income is required because the court will make a repayment plan for you and if you don't have a stable income then this cannot be done. Following incomes can be used for chapter
13 bankruptcy;

• Regular salary
• Income generated form self-employment
• Income generated form seasonal work
• Sales commissions
• Pension
• Benefits interms of Social Security
• Benefits provided due to Disability
• Benefits provided during Unemployment
• Public benefits
• Rents

Chapter 13 Requires Disposable Income

The steady income that you earn must be sufficient to fulfill your basic monthly
necessities as well as monthly payments towards your debts. The total payable
amount depends on your debts, their type, and court's regulations. Some courts
will let you to pay nothing on the debts which are not obligatory by law to
be paid in full, if you are paying the rest of the debts completely. Some courts
will force you to pay all debts in full.

Another thing to remember here is that you must have a reasonable budget to fund the chapter 13 bankruptcy. Otherwise if you don't propose to pay 100% then your budget can be challenged in the court.

Debts Shouldn't Be High

The amount of debts you owe must not be too high. Incase secured debts surpass
$871,550 and unsecured debts exceed $269,250, then you are not eligible to file
in chapter 13. The most common secured debts include, mortgage and auto
loans. A debt becomes secured when a lender like IRS files a lien against
it. Unsecured debt, on the other hand, is the one on which you don't loose any
property if you are unable to repay it. These include credit
card debts, legal bills, medical bills, student
loans, etc. In any case be very careful before filing for bankruptcy and assess your fiancial situation completely.