{"id":4843,"date":"2021-12-16T06:13:22","date_gmt":"2021-12-16T06:13:22","guid":{"rendered":"https:\/\/recoverylawgroup.com\/?p=4843"},"modified":"2025-08-21T11:02:01","modified_gmt":"2025-08-21T11:02:01","slug":"what-are-the-rules-for-chapter-13-bankruptcy","status":"publish","type":"post","link":"https:\/\/recoverylawgroup.com\/staging_D\/what-are-the-rules-for-chapter-13-bankruptcy\/","title":{"rendered":"What are the rules for chapter 13 bankruptcy?"},"content":{"rendered":"

Call: 888-297-6203<\/a><\/strong><\/p>\n

Overhauling of bankruptcy laws in 2005 brought the means test in focus. However, if you are filing for bankruptcy under chapter 13, the means test plays no role as it is used to filter people for chapter 7 eligibility. Chapter 13 bankruptcy<\/a> also involves certain eligibility criteria like the income test to determine the duration of your chapter 13 repayment plan.<\/p>\n

Chapter 7 bankruptcy means test<\/strong><\/p>\n

A means test is used to find out whether you have enough income to repay some of your unsecured debts through a chapter 13 repayment plan. According to bankruptcy lawyers of Dallas law firm (https:\/\/www.recoverylawgroup.com\/bankruptcy\/), if your income is more than the median income in your state, you need to qualify for the means test to file under chapter 7. In case you fail the means test, you cannot file under chapter 7 and must file under chapter 13.<\/p>\n

Eligibility for chapter 13 bankruptcy<\/strong><\/p>\n

Though chapter 13 does not have a means test to determine whether your income is too high, in this case, eligibility is decided based on how low your income is. If you cannot fund your repayment plan, you will not be eligible for this chapter. Additional limits include that chapter 13 is available only to individuals and not businesses. Moreover, your secured debts should not be more than $1,184,200 and unsecured debts not more than $394,725. Another thing to keep in mind is that your proposed repayment plan should take care of all your debts.<\/p>\n

Importance of income in chapter 13 bankruptcy<\/strong><\/p>\n

Though your income does not prevent you from filing under chapter 13, your disposable income determines how long the repayment plan will last. For people with income less than the state median, the repayment plan is generally for 3 years; while for people with income more than the state\u2019s median income, the plan extends to 5 years. Call (888-297-6203) to consult with experienced bankruptcy lawyers.<\/p>\n\n

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