The process of filing for bankruptcy depends on who is filing it - an individual or a business. If it is a business, even a sole proprietorship, they cannot file for Chapter 13 bankruptcy and need to file under the Chapter 11 bankruptcy and get the much needed help to reorganize their debts.

If they do file as a individual who own a business as a sole proprietor, they can file under Chapter 13 bankruptcy and embrace the business-related debts for which they are personally legally responsible.

Debtors are required to have steady and regular earnings to be able to qualify for Chapter 13 bankruptcy. It is important to understand the difference between earning the same amount of money every month and a steady income. A steady income is considered to continuous and it ought to be recurring weekly, monthly, quarterly, semi-annual, seasonally, or even annually. People can use the following income to fund a Chapter 13 bankruptcy plan- regular wages or salary; income from self-employment; wages from seasonal work; commissions from sales or other work; pension payments; Social Security benefits; disability or workers' compensation benefits; unemployment benefits, strike benefits; public benefits (welfare payments); child support or alimony you receive; royalties and rents; and proceeds from selling property, especially if selling property is the debtor's primary business.

To qualify for Chapter 13 bankruptcy, a debtor's income should be such that they should be able to support themselves and their daily needs. After which they should have some income left to make payments towards their debt repayment to the court for three to five years.

The amount that they are required to be paid will be determined by the amount of debt they own in the first place. Certain debts have to be paid in full while others dont.

To qualify for Chapter 13 bankruptcy the secured debts should not exceed $922,975.00 and the unsecured debts should not exceed $307,675. A debt is secured if the debtor is in a situation where they can lose specific property while an unsecured debt is any debt for which they haven't pledged collateral.