MenuA requirement to be a debtor in a chapter 13 case is having "regular income." Practically speaking, the source and regularity of the income is not as important as existence of the income. Chapter 13 bankruptcy involves a court approved payment plan. In order to obtain approval, a debtor must demonstrate to satisfaction of the court, trustee, and other parties that the plan is feasible, i.e. the debtor will be able to make the payments proposed. Usually, this means the debtor must disclose a source of income that will pay his or her basic living expenses as well as the proposed bankruptcy payment. Most sources of income, if large enough in size, will do.
Feasibility
In chapter 13 bankruptcy, feasibility is whether the plan is financially viable. Most often, the term refers to whether the debtor has sufficient income to make the proposed payments. Sometimes, the term is used in reference to whether the plan payment is large enough to pay out the claims provided for in the plan.
