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Bankruptcy Guide

Chapter 13 Bankruptcy: The Repayment Plan

Chapter 13 allows people with regular income to catch up on mortgage arrears, keep their property, and repay debts over 3–5 years. It is significantly more complex than Chapter 7.

Chapter 13 is rarely successful without an attorney. Studies show only about 2 in 100 pro se Chapter 13 cases reach discharge. The plan drafting, confirmation process, and 3–5 year maintenance require legal expertise. We strongly recommend consulting a bankruptcy attorney if Chapter 13 is relevant to your situation.

Quick facts

Timeline
3–5 years
Filing fee
$313
Discharge rate (with attorney)
~40%
Pro se discharge rate
~2%

Who Should Consider Chapter 13?

Chapter 13 is most valuable when you have regular income and want to keep secured property — especially a home facing foreclosure or a car you're behind on. It lets you catch up on arrears over time while the automatic stay protects you. It's also the option if your income is too high for Chapter 7 or if you've filed Chapter 7 too recently to file again.

Chapter 13 Timeline

  1. 01

    Credit counseling

    Required before filing. Same as Chapter 7 — must be from an approved provider.

  2. 02

    File petition + repayment plan

    You propose a 3–5 year plan to repay some or all debts. The plan must be feasible given your income.

  3. 03

    Automatic stay begins

    Creditor actions stop. Foreclosure is paused. Garnishment stops.

  4. 04

    Confirmation hearing

    The court reviews and confirms your plan. Creditors may object. This is where complexity grows.

  5. 05

    Monthly plan payments

    You make regular payments to a trustee for 3–5 years. Missing payments can cause dismissal.

  6. 06

    Discharge

    After completing the plan and debtor education, remaining eligible debts are discharged.