{"id":286928,"date":"2016-04-04T10:41:50","date_gmt":"2016-04-04T15:41:50","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/bankruptcy\/chapter-13\/who-can-file-for-chapter-13-bankruptcy.html"},"modified":"2026-07-28T16:24:39","modified_gmt":"2026-07-28T21:24:39","slug":"who-can-file-for-chapter-13-bankruptcy","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/chapter-13\/who-can-file-for-chapter-13-bankruptcy.html","title":{"rendered":"Who Can File for Chapter 13 Bankruptcy?"},"content":{"rendered":"\n
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Who Can File for Chapter 13 Bankruptcy?<\/h1>\n\n
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\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Most individuals who maintain a regular income<\/span> and have debts that fall below the federal limits can file for Chapter 13 bankruptcy<\/span>. To qualify, you must have unsecured debts<\/span> that total less than $526,700 and less than $1,580,125 in secured debt<\/span>. The federal bankruptcy laws<\/span> also require that you have a reliable source of income sufficient to fund a three- to five-year repayment plan<\/span>. You must also have not received a Chapter 13 bankruptcy<\/span> discharge within the past two years (or a Chapter 7 discharge in the past four years). You must also be an individual or married couple, as corporations and LLCs cannot file Chapter 13.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Chapter 13 bankruptcy<\/span> is designed for people with a regular income<\/span> who want to keep their property while catching up on their outstanding debt. People who opt for this type of bankruptcy<\/span> often have a history of missed payments on their debts and believe the best way to bring their debts current is through a court-supervised repayment plan<\/span>.<\/p>\n

In this article, we\u2019ll explain how a Chapter 13 <\/span>bankruptcy<\/span> case<\/span> works and how it differs from Chapter 7 bankruptcy<\/span>. We will also discuss how a person qualifies for a Chapter 13 case<\/span> and what happens once your bankruptcy case<\/span> is complete.<\/p>\n

If you\u2019re considering filing for bankruptcy or are in the middle of a bankruptcy case<\/span>, contact a local bankruptcy attorney<\/span><\/a>. Your attorney will make sure that you follow the proper steps for a Chapter 13 bankruptcy<\/span> and, if necessary, explain how to amend your petition to a Chapter 7 <\/span>bankruptcy<\/span> case<\/span>.<\/p>\n

Chapter 13 <\/span>Bankruptcy<\/span> Basics<\/span>: How Does It Work?<\/h2>\n

A Chapter 13 bankruptcy<\/span> is sometimes called a \u201creorganization<\/span>\u201d bankruptcy. Unlike a Chapter 7 bankruptcy<\/span>, a Chapter 13 filing allows debtors to keep their property and pay their creditors under a court-approved monthly repayment plan<\/span>.<\/p>\n

Both types of bankruptcy<\/span> are forms of judicial debt relief, but work in different ways. In a Chapter 7 bankruptcy<\/span>, the court discharges all of your included debt. Once your Chapter 7 <\/span>bankruptcy<\/span> case<\/span> is complete, you no longer owe money to your creditors.<\/p>\n

With a Chapter 13 case<\/span>, you settle your debts by meeting them in a monthly <\/span>payment<\/span> plan<\/span>. This plan typically lasts anywhere from three to five years, depending on your income. Before your Chapter 13 trustee<\/span> will approve your bankruptcy plan<\/span>, they must confirm that it is feasible and acceptable to your creditors.<\/p>\n

Your Repayment Plan<\/span> and the Confirmation Hearing<\/span><\/h2>\n

If the trustee approves your plan, they will schedule a \u201cconfirmation hearing<\/span>.\u201d This is when your trustee presents the proposed plan to the judge and your creditors. The judge reviews the plan, and the creditors have the opportunity to object to it.<\/p>\n

The hope is that the judge will approve (confirm), but there\u2019s a chance they\u2019ll order the trustee to make modifications. Depending on the creditors\u2019 objections, the judge might dismiss your case. However, this is rare. The trustee knows what the bankruptcy courts<\/span> expect and should be able to devise an acceptable repayment plan<\/span>.<\/p>\n

Once your trustee and the bankruptcy court<\/span> approve your plan, you begin making payments to your creditors. If you don\u2019t make your payments on time, you run the risk of the trustee dismissing your payment plan<\/span>. If this happens, you will have to pay all\u00a0past-due<\/span>\u00a0amounts to your creditors immediately, or they will resume collection activity.<\/p>\n

Chapter 13 Eligibility Requirements<\/span>: Quick Checklist<\/h2>\n

It can be difficult to decide which\u00a0type of bankruptcy<\/span>\u00a0is best\u00a0for your financial situation. If you owe a lot of unsecured debt<\/span> and own little to no property, Chapter 7 is probably your best option. However, if you own property and want to keep it, you should consider a Chapter 13 bankruptcy<\/span>.<\/p>\n

It\u2019s important to keep in mind that just because you want to file a Chapter 13, that doesn\u2019t necessarily mean you\u2019ll qualify for a reorganization<\/span> bankruptcy. You must meet certain criteria to pursue a Chapter 13 <\/span>bankruptcy<\/span> case<\/span>.<\/p>\n

Some of the requirements for filing Chapter 13 include the following:<\/p>\n