In order to be eligible to file for Chapter 13 Bankruptcy one must be an individual with “regular income.” Corporations, partnerships, estates, and trusts are not eligible to file for Chapter 13, but a trustee of a trust may be eligible. A husband and wife can file a joint Chapter 13 case. The filing of a joint petition does not automatically result in the substantive consolidation of the two debtors’ estates. Individuals who have their own business and operate as a sole proprietorship are generally eligible to file Chapter 13.
Regular income means a source of money sufficient to fund a Chapter 13 plan. 11 U.S.C. Section 101(30). Income 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.
