Which of the following is true of a Chapter 13 petition?
A) It can be filed by all individual debtors, irrespective of their income.
B) The petitioner need not demand an extension or composition.
C) To qualify for Chapter 13, the debts must primarily be consumer debt.
D) Creditors can file a Chapter 13 petition claiming payment from a debtor.

Question

Quizplus · Accepted Answer

To qualify for Chapter 13, the debts must primarily be consumer debt. This means that the debts should come from personal, family, or household expenses, rather than from business expenses. The other options are not true of Chapter 13 petitions; A is false because there are income requirements, B is false because a payment plan must be proposed, and D is false because only debtors can file a Chapter 13 petition.

Which of the Following Is True of a Chapter 13