Who Can File Chapter 13

How does Chapter 13 eligibility actually work?

Eligibility for every chapter of bankruptcy is decided in one place: 11 U.S.C. § 109, titled "Who may be a debtor." Subsection (a) sets the outer boundary — only a person who resides, is domiciled, has a place of business, or has property in the United States may be a debtor under title 11 at all. Subsection (e) then narrows Chapter 13 specifically to an individual with regular income whose noncontingent, liquidated debts fall under the limits the statute sets.

Courts state this plainly in their own filing materials. The District of Colorado's Chapter 13 petition packet says: "Only an individual with regular income may be a debtor under chapter 13. 11 U.S.C. § 109(e)." The Western District of Kentucky puts the same point the other way around: a sole proprietor may file Chapter 13, but a corporation or partnership may not.

Eligibility is a gate, not a prediction. Passing it means the case can be filed; whether a plan is confirmed is a separate question under different sections.

• § 109(a) — you must reside, be domiciled, have a place of business, or have property in the United States
• § 109(e) — Chapter 13 is limited to an individual with regular income, within the statute's debt limits
• § 109(h) — a pre-filing credit counseling briefing is required
• § 109(g) — a dismissal in the prior 180 days can bar a new filing

What changes the answer for your situation?

Four things move this analysis most often, and each maps to a subsection of § 109 rather than to anything discretionary.

The first is what kind of filer you are. Chapter 13 reaches individuals only. The District of Arizona's guidance notes that corporations, partnerships and LLCs "do not get discharges and are not eligible for Chapter 13."

The second is how much you owe. Section 109(e) applies limits to noncontingent, liquidated debts, split between secured and unsecured. Arizona's pamphlet observes that some individuals need Chapter 11 "because their debts are too large for them to qualify to file a Chapter 13."

The third is whether your income is regular enough to fund payments over time — the statutory phrase is "individual with regular income."

The fourth is your filing history. Under § 109(g), a case dismissed in the prior 180 days in the circumstances that section describes can make you ineligible to file again yet.

What does federal law actually say?

Chapter 13 eligibility is federal and uniform. Section 103(j) states that "Chapter 13 of this title applies only in a case under such chapter," while chapters 1, 3 and 5 — including § 109 — apply across chapters 7, 11, 12 and 13.

Section 109(e) is the operative rule: Chapter 13 is for an individual with regular income, within stated debt limits. Section 109(h) adds the credit counseling briefing requirement, and § 109(g) addresses when a recent dismissal bars a new filing.

Two related provisions matter to how people actually use the chapter. Section 1321 states simply that "The debtor shall file a plan" — in Chapter 13 only the debtor may propose one. And § 303(a) provides that an involuntary case may be commenced only under chapter 7 or 11, so no creditor can force you into Chapter 13. Filing it is always your decision.

Section 1307(a) lets a Chapter 13 debtor convert to Chapter 7 at any time, and any waiver of that right is unenforceable.

• § 109(e) — individual with regular income, within debt limits
• § 109(h) — credit counseling briefing before filing
• § 109(g) — refiling bar after certain dismissals
• § 303(a) — no involuntary Chapter 13; only you can file it
• § 1307(a) — you may convert to Chapter 7 at any time

Where do state or local rules come into this?

Who may be a Chapter 13 debtor is set by federal statute, so the eligibility test itself does not change when you cross a state line. What changes around it is real but separate.

State law supplies the exemptions that decide which property you keep, and those amounts vary widely. Official Form 101's pro se page tells filers they "must also be familiar with any state exemption laws that apply." Median family income figures, which drive the applicable commitment period on Form 122C-1, are published by state and household size. Both live on our state pages rather than here.

Local practice also shapes the paperwork. The District of Minnesota requires a full legal description of real property on Schedule C under its Local Rule 1007-1(b); the Northern District of Illinois requires a copy of the front and back of a photo ID at case opening under Local Rule 5005-1E. Neither changes who may file — only what your district expects when you do.

• Eligibility under § 109 — federal and the same everywhere
• Exemptions — state law, and they vary substantially
• Median income figures — published by state and household size
• Local forms, plan forms and filing logistics — set district by district

What does this look like in practice?

Most people arrive at Chapter 13 because of something they want to keep. The District of Arizona's guidance describes the chapter as a way to "cure defaults on secured debts, including defaults on home mortgages and motor vehicles," and notes that under either chapter you must keep paying debts secured by property you want to hold onto.

That is why regular income is the statutory test rather than a low income. The plan is a schedule of payments to a trustee over time, and § 1322(a)(1) requires it to commit as much future income to the trustee's supervision as executing the plan needs.

One practical point worth knowing before you file: an earlier case can affect the automatic stay independently of eligibility. Arizona's guidance explains that if you filed within the past year and that case was dismissed, the stay may last only 30 days unless the court extends it, and that if two or more cases were dismissed in the prior year the stay does not take effect at all unless the court so orders after a hearing.

• Curing a mortgage or vehicle default over time is the common reason people choose Chapter 13
• Secured payments continue on property you intend to keep
• A dismissal within the past year can shorten or eliminate the automatic stay in a new case

Can you file Chapter 13 if you are self-employed?

Yes. Self-employment does not remove you from Chapter 13, because the eligibility test in § 109(e) asks whether you are an individual with regular income — not whether that income comes from an employer.

Congress addressed this directly. Under 11 U.S.C. § 1304(a), "A debtor that is self-employed and incurs trade credit in the production of income from such employment is engaged in business." Section 1304(b) then lets a debtor engaged in business keep operating that business during the case, subject to the court's limits, and § 1304(c) requires that debtor to perform the trustee's reporting duty under § 704(a)(8).

The distinction that matters is legal form, not work arrangement. The Western District of Kentucky states that a person who operates a small business as a sole proprietor may file under Chapter 13, but a corporation or partnership may not. If your business is a separate entity, the entity cannot be a Chapter 13 debtor even though you personally may be eligible.

• A sole proprietor may file Chapter 13; the corporation or LLC itself may not
• A self-employed debtor who incurs trade credit is "engaged in business" under § 1304(a)
• A debtor engaged in business may generally keep operating it and takes on added reporting duties

What documents and information are involved?

Courts publish Chapter 13 checklists, and they are consistent. Expect the Voluntary Petition (Official Form 101), your Statement About Your Social Security Numbers (Form 121), Schedules A/B through J, the Declaration About an Individual Debtor's Schedules, your Statement of Financial Affairs (Form 107), the Chapter 13 Statement of Your Current Monthly Income (Form 122C-1) — required of all individual Chapter 13 debtors — and Form 122C-2 where applicable. A Chapter 13 plan is also filed, on your district's local form.

Two items go to eligibility directly. The certificate of credit counseling evidences the § 109(h) briefing; the Northern District of Illinois warns that failing to obtain it before filing "will almost certainly result in the dismissal of your case." And the filing fee — $235 under 28 U.S.C. § 1930(a)(1)(B), plus a $78 administrative fee — may be paid in installments by an individual using Official Form 103A.

• Certificate of credit counseling from an approved agency, obtained before filing
• Official Forms 101, 121, 106A/B–J, 106Dec, 107, 122C-1 (and 122C-2 if applicable)
• A Chapter 13 plan on your district's local form
• Six months of income proof, 60 days of payment advices, creditor names and addresses
• Filing fee, or Form 103A to request installments

What should you ask a lawyer?

Clerk's offices cannot help you here. The District of Massachusetts, the Northern District of Illinois and the Middle District of Alabama all state that court staff are prohibited from giving legal advice or helping complete forms, and the District of New Hampshire's Chapter 13 guide recommends seeking an attorney's advice if possible.

Useful questions are specific to the four gates in § 109. Ask whether your income counts as "regular" for § 109(e) purposes given how you are actually paid; whether the noncontingent, liquidated debts on your schedules fall within the § 109(e) limits; whether any prior dismissal triggers § 109(g) or affects the automatic stay in a new case; and, if you are self-employed, how § 1304's business-debtor duties would apply to you.

Also worth asking: whether Chapter 7 fits your situation better, and what converting under § 1307(a) would mean if circumstances change mid-case.

• Does my income qualify as "regular income" under § 109(e) the way I am actually paid?
• Do my scheduled debts fall within the § 109(e) limits?
• Does any prior case trigger § 109(g), or shorten the automatic stay?
• As a sole proprietor, what do the § 1304 business-debtor duties require of me?
• How would Chapter 7 compare, and what would converting under § 1307(a) involve?

Frequently asked questions

Who can file Chapter 13?

An individual with regular income, under 11 U.S.C. § 109(e), whose noncontingent, liquidated debts fall within the limits that section sets. You must also have completed the credit counseling briefing required by § 109(h) and not be barred by a recent dismissal under § 109(g). Corporations and partnerships cannot be Chapter 13 debtors.

Can a business file Chapter 13?

Not as an entity. The Western District of Kentucky states that a corporation or partnership may not be a Chapter 13 debtor, though a person who operates a small business as a sole proprietor may file. If you are self-employed and incur trade credit, § 1304(a) treats you as "engaged in business," and § 1304(b) generally lets you keep operating during the case.

Does being above the median income disqualify me from Chapter 13?

No. The eligibility test in § 109(e) asks whether you are an individual with regular income, not whether your income is low. Income relative to the median matters to a different question — Form 122C-2 is required only when annual income exceeds the applicable median family income, per the District of Minnesota's Chapter 13 filing requirements. That affects your plan, not your ability to file.

Can creditors force me into Chapter 13?

No. Under 11 U.S.C. § 303(a), an involuntary case may be commenced only under chapter 7 or chapter 11. Chapter 13 is voluntary, and § 1321 provides that the debtor files the plan — in Chapter 13 only you may propose one. Filing under this chapter is always your own decision.

What if I filed bankruptcy before?

Timing matters in two separate ways. Section 109(g) can bar you from filing again for 180 days after a dismissal in the circumstances that section describes. Separately, the District of Arizona explains that if a case filed within the past year was dismissed, the automatic stay in a new case may last only 30 days unless the court extends it for good cause.

What does Chapter 13 cost to file?

The statutory filing fee is $235 under 28 U.S.C. § 1930(a)(1)(B), plus a $78 administrative fee. Courts commonly allow an individual to pay in installments by filing Official Form 103A with the petition. Attorney fees are separate and are disclosed to the court. Check your court's current fee schedule before filing, since published totals vary.

Can I switch to Chapter 7 later?

Section 1307(a) provides that a Chapter 13 debtor may convert the case to Chapter 7 at any time, and any waiver of that right is unenforceable. Section 1307(b) also lets you ask the court to dismiss the case, subject to the conditions in that subsection. Whether either step makes sense in your situation is a question for a lawyer.

Sources

• 11 U.S.C. § 109 — Who may be a debtor · official source
• 11 U.S.C. § 103 — Applicability of chapters
• 11 U.S.C. § 1304 — Debtor engaged in business · official source
• 11 U.S.C. § 303 — Involuntary cases
• 11 U.S.C. § 1307 — Conversion or dismissal · official source
• 11 U.S.C. § 1321 — Filing of plan
• 11 U.S.C. § 1322 — Contents of plan · official source
• COB official page — Chapter 13 Voluntary Petition Packet
• Bankr. W.D. Ky. official guidance — Chapter 13 Filing Requirements
• U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter: What can Bankruptcy do for you? What will it do to you?
• Bankr. D. Minn. official guidance — Chapter 13 Filing Requirements
• Bankr. N.D. Ill. official guidance — Required Documents Chapter 13
• Bankr. E.D. La. official guidance — Chapter 13 Form Packet
• Chapter 13 Pro Se Short Guide
• Bankr. D. Mass. official page — FAQs for Debtors
• U.S. Bankr. Ct. M.D. Ala., Consumer Pro Se Debtors Guide
• 28 U.S.C. § 1930(a)(1)(B)
• Bankruptcy Court Miscellaneous Fee Schedule, Item 8

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