Chapter 13 uses a court-approved repayment plan.
U.S. Courts describes Chapter 13 as a wage earner’s plan for individuals with regular income, generally lasting three to five years. A workable plan depends on more than the amount a filer hopes to pay; income, expenses, claims, arrears, property, statutory rules, and local practice all matter.
Why Chapter 13 may be considered
- Catch up on secured debt: address mortgage or vehicle arrears under a proposed plan.
- Keep property: manage value that could create Chapter 7 risk, subject to plan requirements.
- Handle priority obligations: provide required treatment for certain taxes or support obligations.
- Use regular income: propose payments while retaining property and continuing ordinary obligations.
- Respond to Chapter 7 limits: evaluate an alternative when means testing or other facts make Chapter 7 unsuitable.
Plan-feasibility worksheet
| Input | Evidence | Question |
|---|---|---|
| Income | Pay records, business income, benefits, household contributions | How stable is it across the plan? |
| Arrears and claims | Mortgage, vehicle, tax, support, and creditor records | Which amounts must be paid and how? |
| Property | Values, liens, ownership, exemptions | Does value affect required distribution? |
| Living costs | Current, documented household budget | Is there a durable margin? |
| Case fees | Court fee, attorney agreement, trustee treatment | How do fees affect the payment? |
Guides for common Chapter 13 problems
Choose counsel for the full case
A Chapter 13 lawyer should explain plan assumptions, local court and trustee practice, fee treatment, communication after confirmation, and what happens when income or expenses change.
Feasibility comes before optimism
Stopping an immediate collection event may be important, but a filing that cannot be supported by a realistic budget can create another crisis. Test the ongoing obligations and proposed plan together.