Only individuals are eligible to file for
Chapter 13 Bankruptcy. A husband and wife can file a joint chapter 13 case. Corporations, partnerships, estates, and trusts are not eligible to file for chapter 13. But individual operating their own business as a sole proprietorship (unincorporated) are eligible to file chapter 13 to deal with their personal and business debt.
Regular Source of Income
In order to qualify for chapter 13 bankruptcy, an individual must have a source of "regular income." "Regular income" means a source of money sufficient to fund a chapter 13 plan. the type of "income" necessary is not defined by the Bankruptcy Code, but the courts have held that Congress intended a broad definition of income for purposes of eligibility for chapter 13.Typical sources of regular income are wages, social security income, and retirement benefits.
