Chapter 13 Bankruptcy Attorneys
Experienced legal representation for chapter 13 bankruptcy matters across all 50 states.
About Chapter 13 Bankruptcy
Chapter 13 bankruptcy, known as a "wage earner's plan," allows individuals with regular income to develop a court-approved plan to repay all or a portion of their debts over a period of three to five years. Unlike Chapter 7 liquidation, Chapter 13 enables debtors to keep all of their property — including non-exempt assets that might otherwise be liquidated — while making structured payments to creditors through a court-appointed trustee. This chapter is particularly valuable for homeowners facing foreclosure, as it provides a mechanism to cure mortgage arrears over the life of the plan while maintaining regular monthly payments.
Eligibility for Chapter 13 requires that the debtor have regular income sufficient to fund a repayment plan and that unsecured debts not exceed $2,750,000 and secured debts not exceed $2,750,000 (as adjusted by the Bankruptcy Threshold Adjustment and Technical Corrections Act of 2022, which eliminated the separate caps and created a single combined debt limit of $2,750,000). The debtor must also be current on tax filings for the four years preceding the bankruptcy filing.
Under a Chapter 13 plan, the debtor proposes monthly payments to the trustee, who distributes funds to creditors according to the plan's terms. Priority debts such as recent taxes and domestic support obligations must be paid in full. Secured creditors must receive at least the value of their collateral. Unsecured creditors receive a portion of what they are owed based on the debtor's disposable income, and in many cases receive only pennies on the dollar. At the conclusion of the plan, remaining qualifying unsecured debts are discharged.
Chapter 13 offers several unique advantages not available under Chapter 7, including the ability to cure mortgage arrears, strip off wholly unsecured junior liens, cram down the balance of certain secured debts to the collateral's current value, and protect co-debtors from collection action through the co-debtor stay.
Why You Need a Chapter 13 Bankruptcy Attorney
Chapter 13 bankruptcy serves as a critical tool for individuals who earn too much to qualify for Chapter 7, who need to protect non-exempt assets, or who are behind on mortgage or car payments and need a structured way to catch up. For homeowners, Chapter 13 may be the only legal mechanism available to stop a foreclosure and cure the arrears over time while keeping the home. This is particularly significant given that homeownership represents the single largest financial asset for most American families.
Beyond foreclosure prevention, Chapter 13 provides a disciplined framework for financial recovery. The structured repayment plan, overseen by a trustee and approved by the court, ensures that creditors receive fair treatment while the debtor maintains a reasonable standard of living. For many filers, the three-to-five-year plan period represents a transition from financial crisis to stability, during which they develop improved budgeting habits and financial discipline that serve them well after discharge. The Chapter 13 discharge is also broader than the Chapter 7 discharge, encompassing certain debts that cannot be eliminated in Chapter 7.
Common Chapter 13 Bankruptcy Cases
Foreclosure Cure and Mortgage Arrears
Homeowners who have fallen behind on mortgage payments and face active or imminent foreclosure proceedings, using Chapter 13 to cure arrears over the plan period while resuming regular monthly payments.
Car Loan Cramdown
Debtors who owe significantly more on a car loan than the vehicle is worth, using Chapter 13 to reduce the secured claim to the vehicle's current market value and often obtain a lower interest rate.
Tax Debt Repayment
Individuals owing back taxes to the IRS or state tax authorities who use Chapter 13 to repay priority tax debts over three to five years without the penalties and aggressive collection tactics of tax agencies.
Lien Stripping on Second Mortgages
Homeowners whose property value has fallen below the balance of the first mortgage, allowing them to strip off a wholly unsecured second mortgage or home equity line of credit and treat it as unsecured debt.
Income Too High for Chapter 7
Individuals with above-median income who fail the Chapter 7 means test but need debt relief, using Chapter 13 to restructure debts while maintaining their standard of living.
Protecting Non-Exempt Assets
Debtors who own property that would not be protected by exemptions in a Chapter 7 case, choosing Chapter 13 to keep all assets while repaying creditors at least what they would have received in a liquidation.
Co-Debtor Protection
Debtors who share consumer debts with friends or family members and want to protect those co-signers from collection action through the Chapter 13 co-debtor stay while repaying the shared obligation through the plan.
Repeat Filing After Recent Chapter 7
Individuals who received a Chapter 7 discharge within the past eight years and are facing new financial difficulties, using Chapter 13 as an alternative since the waiting period for a Chapter 13 filing after Chapter 7 is only four years.
Typical Chapter 13 Bankruptcy Case Timeline
Consultation and Plan Development
1–3 weeksThe attorney analyzes your income, expenses, assets, and debts to determine if Chapter 13 is the right option and develops a proposed repayment plan that satisfies legal requirements while fitting your budget.
Credit Counseling and Filing
1–3 weeksYou complete mandatory pre-filing credit counseling. The attorney files the petition, schedules, and proposed Chapter 13 plan. The automatic stay takes effect immediately, stopping all collection actions including foreclosure.
Plan Payments Begin
30 days after filingYou must begin making plan payments to the Chapter 13 trustee within 30 days of filing, even before the plan is formally confirmed by the court. Many plans use payroll deduction for consistency.
Confirmation Hearing
2–4 months after filingThe court holds a hearing to determine whether the proposed plan meets all legal requirements, including the best interests of creditors test, the feasibility test, and good faith. Creditors may file objections before confirmation.
Plan Period
3–5 yearsYou make regular monthly payments to the trustee for the duration of the plan. Below-median debtors may qualify for a three-year plan; above-median debtors typically must commit to five years. Plan modifications are available if circumstances change.
Discharge and Completion
After final plan paymentUpon completing all plan payments and the required debtor education course, the court grants a discharge of remaining qualifying unsecured debts. The trustee files a final report, and the case is closed.
Know Your Rights
- You have the right to propose a Chapter 13 plan that fits your budget while meeting the legal requirements for minimum payments to creditors, including the best interests of creditors test and the disposable income test.
- The automatic stay provides immediate protection from all collection actions, including foreclosure, repossession, wage garnishment, and creditor lawsuits, from the moment your petition is filed.
- The Chapter 13 co-debtor stay protects individuals who co-signed consumer debts with you from collection action while your plan is active, a protection not available in Chapter 7.
- You have the right to cure mortgage arrears over the life of your plan while keeping your home, provided you maintain regular ongoing mortgage payments during the plan period.
- If your financial circumstances change during the plan — such as job loss, medical emergency, or increased income — you have the right to request a plan modification from the court.
- You cannot be fired by your employer because of your bankruptcy filing, and you have the right to continue earning income without fear of employment discrimination related to the filing.
- If you experience a severe hardship that prevents plan completion, you may request a hardship discharge from the court, which provides relief even though the plan was not fully completed.
What to Look for in a Chapter 13 Bankruptcy Attorney
Chapter 13 cases are more complex and lengthy than Chapter 7 filings, so selecting an experienced attorney is especially important. Look for an attorney who regularly handles Chapter 13 cases in your local jurisdiction and has a strong track record of confirmed plans and successful completions. Because Chapter 13 involves a three-to-five-year relationship with your attorney, consider their communication style and responsiveness — you will likely need to contact them with questions or issues during the plan period. Ask about the attorney's plan confirmation rate and how they handle post-confirmation modifications if your financial circumstances change. A skilled Chapter 13 attorney should be able to clearly explain your projected monthly plan payment, which debts will be paid in full versus partially, how long your plan will last, and what your financial situation will look like after discharge. Verify that the fee quoted is the total expected fee and ask how the fee will be paid — most Chapter 13 attorney fees are paid through the plan itself, reducing the upfront cost significantly.
Questions to Ask Your Chapter 13 Bankruptcy Attorney
- 1What will my estimated monthly plan payment be, and how did you calculate it?
- 2Can I save my home from foreclosure through Chapter 13, and how much additional payment is needed to cure the arrears?
- 3How much of your fee will I need to pay upfront versus through the plan?
- 4Am I eligible for a three-year plan, or will I need to commit to five years?
- 5Can any of my secured debts be crammed down to the collateral's current value?
- 6What happens if I cannot make a plan payment due to a temporary financial setback?
- 7What is the total amount unsecured creditors will receive under my plan, and what percentage of their claims does that represent?
Understanding Chapter 13 Bankruptcy Legal Costs
Chapter 13 attorney fees typically range from $2,500 to $6,000, depending on the jurisdiction and case complexity. Many bankruptcy districts have established "no-look" fee amounts — presumptively reasonable fees that do not require detailed justification to the court, often in the range of $3,500 to $5,000. The primary advantage for debtors is that most of the attorney fee can be paid through the Chapter 13 plan itself, meaning you may only need to pay $0 to $1,000 upfront. The court filing fee is $313, and it can also be paid in installments. Additional costs include the pre-filing credit counseling course ($15 to $50) and the debtor education course ($15 to $50). If post-confirmation issues arise — such as plan modifications, motions for hardship discharge, or adversary proceedings — additional attorney fees may be necessary, which typically require court approval.
Key Legal Terms
Video Resources
These videos are provided for informational purposes only. The attorneys and organizations featured are not affiliated with or endorsed by Northwind Law.
Chapter 13 Bankruptcy - How Much Will I Pay My Creditors
Krystal Todd CPA
ALL You Need to Know About Bankruptcy | Chapter 7 and 13 Comparison
Ascend
Chapter 13 Bankruptcy Explained
Khan Academy
Frequently Asked Questions About Chapter 13 Bankruptcy
Citations & Sources
- [1]In 2023, approximately 155,617 Chapter 13 bankruptcy petitions were filed in federal courts, representing roughly 34% of all consumer bankruptcy filings. — Administrative Office of the U.S. Courts
- [2]Research by the American Bankruptcy Institute estimates that only 33% to 40% of Chapter 13 cases result in a completed plan and discharge, with the remainder dismissed or converted to Chapter 7. — American Bankruptcy Institute
- [3]The Bankruptcy Threshold Adjustment and Technical Corrections Act of 2022 eliminated the separate secured and unsecured debt limits for Chapter 13 eligibility, replacing them with a single combined debt limit of $2,750,000. — U.S. Congress, Public Law 117-151
- [4]Total U.S. mortgage debt outstanding reached $12.6 trillion by the end of 2023, with mortgage delinquency rates remaining relatively low but rising in certain segments, particularly among adjustable-rate mortgage holders. — Federal Reserve Bank of New York, Household Debt and Credit Report
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