Pursuant to 11 U.S.C. § 109(e), any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $383,175 and secured debts are less than $1,149,525. These amounts are adjusted periodically to reflect changes in the consumer price index. A corporation or partnership may not be a chapter 13 debtor.
That’s the legal requirement for ‘eligibility’. The next step of the inquiry is whether Chapter 13 makes sense for you. Can you propose a plan that accomplishes your goals and leaves you with a realistic budget to meet your monthly living expenses. This part is a little harder to figure out, and that is where having a knowledgeable and caring attorney can make all the difference.