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Bankruptcy

Chapter 13 bankruptcy—eligibility

Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual's unsecured debts are less than $394,725 and secured debts are less than $1,184,200. These amounts are adjusted periodically to reflect changes in the consumer price index. A corporation or partnership may not be a chapter 13 debtor.

In Washington state, as per federal bankruptcy law, any individual, including those who are self-employed or running an unincorporated business, can qualify for Chapter 13 bankruptcy relief provided their financial obligations meet certain thresholds. Specifically, an individual is eligible if their unsecured debts are below $394,725 and their secured debts are less than $1,184,200. These debt limits are subject to adjustment based on the consumer price index, ensuring they remain relevant over time. It's important to note that Chapter 13 bankruptcy is designed for individuals and does not apply to corporations or partnerships, which are not eligible to file under this chapter.

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Bankruptcy

Chapter 13 bankruptcy—eligibility

Individual & Family Legal Plan

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Bankruptcy

Chapter 13 bankruptcy—eligibility

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