Chapter 7 bankruptcies are typically only for debtors of lower incomes. But chapter 13 bankruptcy is an option for most individuals of any economic status. The unsecured debts (credit cards, personal loans) of the filer need to be less than $360,475 while the secured debt (home, autos, etc.) must be under $1,081,400.
Every now and again, these amounts are adjusted to the current consumer price index. Corporations and partnerships must file chapter 11, as chapter 13 is not an option for these entities.
In order to be eligible for filing a chapter 13, all involved debtors must successfully complete credit counseling and provide evidence to the court of its completion. This will help the debtor to avoid some of the mistakes that may have led him or her to this situation.
Finally the repayment plan terms vary based upon eligibility factors. If the individual or couple has a family income less than that of the median for their family size, then the repayment plan can be kept to a short three-year repayment plan, but quite often it is extended to 5 years to keep the payment low. Otherwise, if the income is over median, the debtor will be required to work on repayment over a five-year term.