Chapter 13
Chapter 13 bankruptcy: how the repayment plan works
Chapter 13 is a repayment plan for individuals with regular income. It lets you keep property and pay debts over time, usually three to five years, by making plan payments to a trustee who pays your creditors. The discharge comes only after you complete all payments under the plan.1
Connect to a bankruptcy lawyerChapter 13 trades a quick discharge for time: you keep your property and pay through a court-approved plan. Here is who can use it, how the payment is set, what it costs to file and what happens if the plan fails.
General information, not legal advice. Rules and amounts change; check with a lawyer or the court before you act.
In this guide
in court fees to file Chapter 13 (administrative fee effective December 1, 2023)2 3 1
28 U.S. Code § 1930 and Bankruptcy Court Miscellaneous Fee Schedule and Chapter 13 - Bankruptcy Basics
What is Chapter 13 bankruptcy?
The federal courts describe Chapter 13 as acting like a consolidation loan: you make the plan payments to a Chapter 13 trustee, who distributes them to creditors and also reviews the case.1
These are the situations the chapter is built for.
- A home in foreclosure: filing can stop foreclosure proceedings, and missed mortgage payments may be caught up over time through the plan.1
- A car loan or other secured debt: secured debts other than a mortgage on the main home can be rescheduled and spread over the life of the plan.1
- A co-signer: a special codebtor stay generally stops creditors from collecting a consumer debt from someone who owes it together with you.1
- A Chapter 7 filing that the means test presumes to be an abuse: that case may be dismissed or converted, usually to Chapter 13.4
Who can file Chapter 13?
Chapter 13 is for individuals with regular income, including self-employed people and people who run an unincorporated business. For cases filed on or after April 1, 2025, unsecured debts must be under $526,700 and secured debts under $1,580,125, measured on the filing date.1 5
Those limits have changed more than once in recent years, so check the current figures with the court or a lawyer before relying on them.6
Like every individual filer, you must get credit counseling from an approved agency within the 180 days before filing. An earlier discharge also matters: there is no Chapter 13 discharge if you received a discharge in a Chapter 7 case filed during the 4 years before the new case, or in a Chapter 13 case filed during the 2 years before it.7 6 8
How long does the plan last, and how is the payment set?
Plan length depends on income. If your income is below your state's median, the plan is generally three years unless the court approves a longer period. If it is above the median, the plan generally must be five years. No plan can run longer than five years.1 9
The plan sorts what you owe into three types of claims: priority, secured and unsecured. The home mortgage, a secured claim, has rules of its own.1
| Type of claim | Examples | What the plan must do |
|---|---|---|
| Priority1 | Most taxes and the costs of the bankruptcy proceeding | Generally pay them in full |
| Secured1 | A car loan | To keep the collateral, give the creditor at least the value of the collateral. A loan used to buy the collateral within certain time frames before filing must be paid in full. |
| Home mortgage1 9 | The loan on your main home | Make up the missed payments during the plan while regular payments continue on the original loan schedule. The plan may not change the rights of a lender secured only by your principal residence. |
| Unsecured1 10 | Credit card balances and medical bills | Need not be paid in full, as long as you pay all projected disposable income over the commitment period and these creditors receive at least as much as they would in a Chapter 7 liquidation |
The federal courts tell debtors to consult an attorney about how secured claims should be treated in the plan.1
How does a Chapter 13 case work, step by step?
- File the petition, and file your repayment plan with it or within 14 days after, unless the court grants an extension.1
- The automatic stay starts on filing and stops most collection actions, including foreclosures and garnishments.4
- Attend the meeting of creditors, held between 21 and 50 days after filing.1
- No later than 45 days after that meeting, the judge holds a confirmation hearing and decides whether the plan is feasible and meets the legal standards. Creditors get 28 days' notice and may object.1
- Once confirmed, the plan binds you and each creditor. You pay the trustee, directly or through payroll deduction, and may not take on new debt without consulting the trustee.1
- After you complete all payments under the plan, you are entitled to a discharge.1
What does Chapter 13 cost in court fees?
The court fees are a $235 filing fee plus a $78 administrative fee, $313 in total (administrative fee effective December 1, 2023). With the court's permission they may be paid in up to four installments.2 3 1
The plan payment is a separate matter. It comes out of the rules above: what the plan must pay on priority and secured claims, and what unsecured creditors must receive.1
What if you cannot keep up with the plan?
If the court declines to confirm the plan at the start, you may file a modified plan or convert the case to Chapter 7.1
If you fail to make the payments due under the confirmed plan, the court may dismiss the case or convert it to Chapter 7. A plan may be modified, before or after confirmation, when circumstances change.1
If circumstances beyond your control stop you from completing the plan, you may ask the court for a more limited hardship discharge.1
Some debts are not discharged even when the plan is completed. They include certain long-term obligations such as a home mortgage, alimony and child support, certain taxes, most government funded or guaranteed educational loans, debts for death or injury caused by driving while intoxicated, and criminal restitution or fines.1
Can you file Chapter 13 without a lawyer?
Individuals can file without an attorney, which is called filing pro se. The federal courts strongly recommend getting advice from a qualified attorney, and they specifically tell Chapter 13 debtors to consult one about the treatment of secured claims.12 1
Common questions
How long does Chapter 13 last?
Usually three to five years, and a plan cannot run longer than five years. The federal courts say the discharge typically comes about four years after filing.1 9 13
Can Chapter 13 stop a foreclosure?
Filing stops the foreclosure proceeding, and you may then bring past-due payments current over a reasonable period. The home can still be lost if the foreclosure sale was completed under state law before you filed, or if you do not make the regular mortgage payments that come due after filing.1 9
Do I pay my debts in full in Chapter 13?
Not always. A plan may offer creditors less than full payment. Priority claims must generally be paid in full, while unsecured claims need not be, within the limits the law sets.1
Sources
Official courts & government references- Chapter 13 - Bankruptcy Basics (uscourts.gov)
- 28 U.S. Code § 1930
- Bankruptcy Court Miscellaneous Fee Schedule
- Glossary of Legal Terms (uscourts.gov)
- Federal Register, 90 FR 8941 (Feb. 4, 2025), Judicial Conference: Adjustment of Certain Dollar Amounts Applicable to Bankruptcy Cases
- 11 U.S. Code § 109, notes (Cornell LII)
- Chapter 7 - Bankruptcy Basics
- 11 U.S. Code § 1328(f)(1) (Cornell LII)
- 11 U.S. Code § 1322(d) (Cornell LII)
- FTC Consumer Advice: How To Get Out of Debt
- 11 U.S. Code § 1326(a)(1) (Cornell LII)
- Filing Without an Attorney (uscourts.gov)
- Discharge in Bankruptcy - Bankruptcy Basics (uscourts.gov)
- 11 U.S. Code § 1325(a), unnumbered paragraph (Cornell LII)