Eligibility for Chapter 13 Bankruptcy in Washington DC

Chapter 13 is often a good choice if an individual has a stable income and believes that his financial crisis is temporary. Sole proprietorships and other unincorporated business entities are also eligible to file for Chapter 13 bankruptcy if they meet the debt requirements. Corporations, partnerships, and unincorporated businesses with large amounts of debt are not eligible for Chapter 13 bankruptcy. Instead, they may file under Chapter 11 of the Bankruptcy Code.

An individual is not eligible to file under Chapter 13 if a prior bankruptcy petition was dismissed within the past 180 days due to the debtor’s failure to appear before the court, or comply with court orders. Additionally, one must engage in credit counseling with an approved credit counseling agency within 180 days prior to filing for Chapter 13 bankruptcy. Finally, if a debt management plan was developed pursuant to credit counseling, then that plan must be filed with the court when filing the petition for bankruptcy.