Chapter 13 bankruptcy: keep your home, catch up on payments
Chapter 13 stops foreclosure and repossession and turns your debts into one affordable monthly payment. When the plan ends, most remaining unsecured debt is wiped out, and you keep your property.
A court-approved plan built around what you can afford
In Chapter 13, you propose a repayment plan to the bankruptcy court. You make one monthly payment to the Chapter 13 trustee, who pays your creditors according to the plan.
Debts that must be paid in full, like missed mortgage payments you want to catch up on or certain taxes, are spread over the plan. Unsecured creditors such as credit cards and medical bills usually get only a portion, and often a small one. Whatever's left is discharged when you finish.
Because Chapter 13 isn't a liquidation, you keep your property throughout.
Filing Chapter 13 before the sale triggers the automatic stay and stops it. Missed payments are then caught up through your plan. Timing matters, so call as soon as you can.
When Chapter 13 is the better choice
Chapter 7 is faster and simpler for many people. Chapter 13 is usually better when one of these applies:
Not sure which applies? Try the 2-minute Chapter 7 or 13 screener →
See what your plan could look likeAnswer a few questions and get a fixed-fee quote within 12 hours.
What sets your payment
Chapter 13 payments range from about $100 a month to several thousand, depending on:
- Mortgage or car arrears you want to catch up on, which must be paid in full through the plan
- Priority debts such as certain recent taxes and past-due support
- Your income and household size, which decide the minimum your unsecured creditors must receive
- Non-exempt property, since creditors must get at least what they would have received in a Chapter 7
I build your budget with you so the plan is one you can realistically finish. An affordable payment is the biggest factor in a successful Chapter 13.
| Chapter 13 | Debt consolidation | |
|---|---|---|
| Creditors must participate | Yes, all of them | No, some refuse |
| How much you repay | Often a fraction of unsecured debt | Usually the full balance |
| Stops foreclosure and garnishment | Yes, immediately | No |
| Remaining balance at the end | Discharged | Still owed |
A plan built by your attorney, not a template
Chapter 13 lasts years, so who you work with matters. You'll have a direct line to me, William Foster, for the life of your plan.
- Plans the court approvesI focus on payments the trustee will accept and you can actually afford.
- I handle the objectionsIf the trustee or a creditor objects, I negotiate and amend the plan until it's confirmed.
- Help when life changesJob loss or a new expense? Call me, and we'll look at modifying your plan.
From first call to discharge
- Day one
Free consultation
We review your income, debts, and what you want to protect, and whether Chapter 13 or Chapter 7 makes more sense.
- Before filing
Build your plan
I run the means test, work through your budget, and set a payment you can keep up with. See the documents you'll need.
- Day 0
File your case
Your petition and plan are filed with the U.S. Bankruptcy Court in Denver. The automatic stay starts immediately.
- Within 30 days
First plan payment
Your first payment to the trustee is due within 30 days of filing, even before the plan is approved.
- About 3 to 6 weeks after filing
Meeting of creditors
A short hearing with the Chapter 13 trustee. I prepare you and attend with you.
- Usually a few months in
Plan confirmation
The court approves your plan, sometimes after changes I negotiate with the trustee or creditors. I attend the confirmation hearing for you.
- 3 to 5 years
Make your payments
One payment a month. Many clients start rebuilding their credit while still in the plan.
- End of plan
Discharge
After your final payment, the remaining qualifying debt is discharged, and you're current on the home or car you kept.
Full representation for the life of your plan
Your fixed fee covers the work from analysis through confirmation and the years of your plan, including:
- your means test, budget, and plan
- the meeting of creditors and confirmation hearing
- plan amendments and objections to creditor claims
- motions to remove certain judgment liens
Chapter 13 frequently asked questions
What's the main difference between Chapter 13 and Chapter 7?
Chapter 7 is a straight discharge with no repayment plan, but non-exempt property, if you have any, can be sold by the trustee. Chapter 13 has no liquidation. You keep your property and make plan payments for 3 to 5 years before receiving a discharge. Compare the two in detail.
Does the means test apply to Chapter 13?
Yes. In Chapter 13, the means test decides whether your plan lasts 3 or 5 years and sets the minimum your unsecured creditors, like credit cards and medical bills, must receive.
Who is eligible for Chapter 13?
You need regular income, and your debts must be under the federal limits, currently about $526,700 in unsecured debt and $1,580,125 in secured debt. The limits adjust every three years. People with larger debts may need Chapter 11.
In some situations, dismissing an earlier bankruptcy bars a new filing for 180 days, and a prior discharge can affect whether you can receive a new one.
What does the Chapter 13 trustee do?
The trustee is appointed to run Chapter 13 cases. The trustee reviews your plan, can object if the payments to creditors seem too low, collects your monthly payment, and pays creditors in the order the plan sets: certain debts like mortgage arrears and taxes first, then unsecured creditors proportionally.
What if I can't make a payment?
Call me right away. You must finish all plan payments to receive a discharge, and the trustee will ask the court to dismiss a case that falls behind. If you've had a genuine hardship, I can often request a lower payment or a modified plan, and in some cases converting to Chapter 7 is an option.
Can Chapter 13 remove a judgment against me?
Sometimes. A judgment lien on your home can be removed by a court motion if it impairs your homestead exemption. Whether that works depends on your home's value and the liens on it. I'll review it with you.
How will Chapter 13 affect my credit?
Both chapters affect your credit temporarily. Some lenders view Chapter 13 more favorably because you're repaying part of your debt, and many clients begin rebuilding credit during the plan. Read about rebuilding credit.
Will my employer or family find out?
Bankruptcy filings are public records, but it's unlikely anyone will know unless they search for them. Federal law prohibits government agencies and private employers from firing you or discriminating against you in employment solely because you filed bankruptcy.
Do I have to go to court?
You'll attend the meeting of creditors, a short hearing with the trustee, usually held by video. I attend the confirmation hearing for you. You'd only need to appear if the plan is contested and the court requires it.
What does my attorney handle?
Everything needed to get your plan confirmed and keep it on track, including:
- reviewing your finances and advising whether to file, and under which chapter
- timing your filing and checking your eligibility for a discharge
- preparing and filing your petition, schedules, means test, budget, and plan
- talking with creditors and the trustee, and advising you on the automatic stay
- attending the meeting of creditors and the confirmation hearing
- reviewing creditor claims and filing objections when needed
- filing plan amendments and motions to remove liens where they apply
- responding to motions and representing you at hearings during the case
Related pages
Keep your home. Get back on track.
Talk with an experienced Chapter 13 attorney for free. You'll learn what your plan could look like and get a fixed price before you commit.