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Bankruptcy

Chapter 13 bankruptcy—eligibility

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 $394,725 and secured debts are less than $1,184,200. These amounts are adjusted periodically to reflect changes in the consumer price index. A corporation or partnership may not be a chapter 13 debtor.

In New York, as in all states, Chapter 13 bankruptcy is available to individuals, including those who are self-employed or running an unincorporated business, provided they meet certain debt limits. As of the knowledge cutoff in 2023, an individual can file for Chapter 13 bankruptcy if their unsecured debts are less than $394,725 and their secured debts are less than $1,184,200. These debt limits are subject to adjustment based on the consumer price index, so they may increase over time to account for inflation. It's important to note that corporations and partnerships are not eligible to file under Chapter 13; this form of bankruptcy is exclusively for individuals. An attorney can provide guidance on whether Chapter 13 is the right option and assist with the filing process, ensuring that all requirements are met.

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Bankruptcy

Chapter 13 bankruptcy—eligibility

Individual & Family Legal Plan

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Bankruptcy

Chapter 13 bankruptcy—eligibility

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