June 25, 2020 Practice Points

Seventh Circuit: Chapter 13 Debtors May Not Appeal In Forma Pauperis

If the debtor is not able to pay its debts, it must seek relief under Chapter 7 of the U.S. Bankruptcy Code.

By Sanford Hausler

The Seventh Circuit has held that a Chapter 13 debtor may not prosecute an appeal in forma pauperis. A debtor in bankruptcy may only file under that chapter if it is able to pay its debts. If the debtor is not able to do so, it must seek relief under Chapter 7 of the U.S. Bankruptcy Code. Hence, seeking to prosecute an appeal in forma pauperis is inconsistent with filing for relief under chapter 13.

Sanford Hausler is an appellate attorney with Pollack, Pollack, Isaac & DeCicco, LLP in New York, New York.


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