Chapter 13 Identification

• Chapter 13 allows for debt restructuring. If you file for Chapter 13, you start a repayment plan that allows you to repay your debts with better interest rates and lower monthly payments. When you file your petition, you have to present a repayment plan to the court outlining how you intend to repay your creditors. If the court approves your case, it will give you a period of three to five years in which you must complete your plan. After this period, the court gives discharge for the debts you have paid.
  
  

Chapter 13 Eligibility

• Corporations or partnerships cannot file for Chapter 13. Individuals can file for Chapter 13 as long as they meet eligibility requirements. Self-employed individuals or those operating an unincorporated business can also file for Chapter 13 as long as it is for personal debt and not company debt. As of 2010, to be eligible, your unsecured debts must not exceed $360,475, and your secured debts must not exceed $1,081,400. If you have both types of debt, you cannot exceed a total of $1,441,875. If you have had a dismissal of a bankruptcy case within the last 180 days, you are not eligible to file for Chapter 13 yet. You must also receive credit counseling from an approved agency within 180 days of filing.
  
  

Chapter 13 Filing

• If you are eligible for Chapter 13, you can file a petition with the court that is located in your area. Your petition must include information on your assets and liabilities, your current income and expenses and a statement of financial affairs. You must also present a certificate from the credit counseling agency proving you received counseling and a copy of the repayment plan you have developed. You must include evidence of payment from your employers and any increases that you expect to have on your income. This can include benefits you expect to receive and other types of payments, such as insurance payments.
  
  

Filing Fees

• Chapter 13 also requires payment of fees. As of 2010, you must pay a $235 filing fee and a $39 miscellaneous administrative fee to the clerk of the court in which you are filing your case. In some cases, you can pay these fees in four installments that must be made before 120 days after you file your petition.