- are a U.S. resident
- have a source of proven, regular income
- owe less than $290,525 in unsecured debts
- owe less than $872,550 in secured debts
Often times, people who choose to file for chapter 13 do so for two reasons. The first reason people consider chapter 13 is because they make too much to file for chapter 7 according to the means test. Anytime people choose to pursue bankruptcy, they must take the means test. This test determines which type of consumer bankruptcy people may file for.
The second reason people may choose to file for chapter 13 is because they wish to repay the debt they owe instead of simply having it discharged. People who file for this type of bankruptcy will have 3 to 5 years to repay the debt that they owe to their creditors.