Prisoner Eligible to File Chapter 13

An Illinois Bankruptcy Court ruled that an incarcerated man was eligible for chapter 13 relief. The debtor was in jail for a DUI conviction and proposed a 60 month payment plan.

The debtor however only earned $14/month in jail and therefore had to rely on his parents to pay the balance of his plan payment. The court ruled that the parents’ contribution of $25/month was not sufficient to meet the requirements that the debtor have a sufficient income to fund the proposed plan. The case was dismissed.  The Bloomberg story does not stay if the matter will be appealed.