Which chapter of bankruptcy law is available only to individuals with a regular income?

Chapter 13 of bankruptcy law is specifically designed for individuals who have a regular income. This chapter allows these individuals to create a repayment plan to pay back all or part of their debts over a period of three to five years. The requirement for a regular income is critical because it ensures that the debtor has the means to make scheduled payments to creditors under the repayment plan. Unlike other chapters, Chapter 13 provides individuals with an opportunity to keep their property and catch up on delinquent mortgage payments or other debts while making manageable payments.

In contrast, Chapter 11 is primarily used by businesses seeking to reorganize and continue operating while repaying debts. Chapter 7, often referred to as liquidation bankruptcy, is available to both individuals and businesses and involves the sale of a debtor's non-exempt assets to pay creditors, making it less focused on individuals with regular income and more on asset liquidation. Chapter 9 is available exclusively to municipalities, allowing them to reorganize their debts while continuing to provide essential services, further distinguishing it from individual-focused bankruptcy options. Thus, Chapter 13's provisions and requirements directly address the needs of individuals with a stable income.