Chapter 13 lets individuals with regular income reorganize debts into a court-approved repayment plan, typically lasting 3–5 years, allowing filers to keep homes and vehicles while catching up past-due amounts.
Chapter 13 ("wage earner's bankruptcy") helps individuals with regular income reorganize debts into a court-monitored repayment plan (usually 3–5 years), allowing many filers to retain non-exempt property and catch up on secured debts.
Under Chapter 13 you submit a repayment plan proposing how you'll pay creditors over three to five years. The plan is supervised by the court and administered by a trustee. Secured and priority debts are typically paid first; unsecured creditors receive payments based on your disposable income and plan terms.
Individuals with regular income whose secured and unsecured debt amounts are within statutory limits may file. Courts expect a feasible payment plan that the debtor can maintain for the plan term.
Debt limits (approx.): unsecured debts generally under ~$250,000 and secured under ~$750,000 (limits change; verify current thresholds).
