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The bankruptcy process
Chapter 13
Chapter 13 is the chapter of the Bankruptcy Code that lets an individual with regular income keep property and pay debts over time under a repayment plan, usually three to five years. 1
Talk to a lawyerHow it works
The debtor makes plan payments to a Chapter 13 trustee, who pays creditors and also reviews the case. 1
It can help with a home. Filing can stop foreclosure proceedings, and missed mortgage payments may be caught up over time through the plan. 1
Not everyone is eligible. For cases filed on or after April 1, 2025, unsecured debts must be under $526,700 and secured debts under $1,580,125. 1
The discharge comes at the end. A Chapter 13 debtor is entitled to a discharge on completing all payments under the plan, and must also complete a financial management course. 1
The court fees are a $235 filing fee plus a $78 administrative fee, $313 in total (administrative fee effective December 1, 2023). 2
Common questions
How is Chapter 13 different from Chapter 7?
Can a Chapter 13 case be changed to Chapter 7?
Yes. A Chapter 13 debtor may convert the case to Chapter 7 at any time. 4
Does Chapter 13 protect a co-signer?
A special codebtor stay generally stops creditors from collecting a consumer debt from someone who owes it together with the debtor. 1
Sources
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