There are specific eligibility requirements for qualifying for Chapter 13 bankruptcy. You will need to demonstrate you have the ability to pay the repayment plan in a Chapter 13 bankruptcy. If your income is too low, you may be eligible for a Chapter 7 bankruptcy. It is also possible that your income may be too high to be eligible for a Chapter 13 bankruptcy. The Chapter 13 means test will determine your eligibility for this type of bankruptcy.
Beyond the means test, to be eligible for a Chapter 13 bankruptcy in Minnesota, your debt must not exceed:
- $1,000,000 in secured debt
- $380,000 in unsecured debt.
These limits are in place to prevent bankruptcy fraud as well as economic disaster for creditors. Filing for the wrong type of bankruptcy can have a dramatic affect on your life.
Speak with one of our experienced Minnesota bankruptcy lawyers to learn about the options available to you and which type of bankruptcy best suits your specific circumstances.