Erie, PA asked in Bankruptcy for Pennsylvania

Q: Are there income requirements for filing Chapter 13?

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1 Lawyer Answer
W. J. Winterstein Jr.
W. J. Winterstein Jr.
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA
  • Licensed in Pennsylvania

A: To be eligible to file a Chapter 13 case, the debtor must have a "periodic income", but the amount is not specified. No maximum amount of income is imposed, but the amount of your income will determine the number of years your Ch. 13 Plan must run.

There are income limits for eligibility to file a Ch. 7 (for the six months preceding the filing of the bankruptcy).

The primary eligibility limit in a Chapter 13 is on the total amount of noncontingent, liquidated debt of the debtor. The debt limits are (approximately) $350,000 in unsecured debt (e.g., credit cards), and $1,000,000 in secured debt (e.g., mortgage debt, car loan, judgements appearing as liens against real estate, etc.). The amounts of the debt limits are adjusted annually with the cost of living (CPI)

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