To be eligible for Chapter 13,debtors must first meet with an approved nonprofit credit counselor and have unsecured debts of less than $400,000.

Nonprofit Credit Counselor

An advisor typically affiliated with a nonprofit organization who provides guidance on managing debt, budgeting, and improving personal financial health.

Chapter 13

A form of bankruptcy that allows individuals earning a regular income to develop a plan to repay all or part of their debts over time, usually three to five years.

Unsecured Debts

Obligations for which the borrower does not provide collateral, making them riskier for lenders.