Chapter 13 Bankruptcy

The best way to eliminate debt and keep your assets

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy focuses on debt reorganization rather than liquidation. You keep your property (home, vehicles, etc.) and create a court-approved repayment plan that eliminates eligible debts over 3-5 years.

Unlike Chapter 7, which requires asset liquidation, Chapter 13 allows you to protect your most valuable assets while systematically paying down debts through an affordable payment plan.
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Do You Qualify for Chapter 13?

File

Prior Filing Timeline

Wait 4 years after a previous Chapter 7 filing or 2 years after a previous Chapter 13 filing before you can file Chapter 13 again.

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Sufficient Disposable Income

After essential living expenses and secured debt payments, you must have enough remaining income to fund a viable 3-5 year repayment plan.

Debt

Debt Amount Limits

Your unsecured debt cannot exceed $526,700 and secured debt cannot exceed $1,580,125 (2025 limits).

General Ledger

Tax Filing Current

You must be current on income tax filings and provide proof of filed state and federal taxes for the past 4 years.

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credit Counseling

Complete required credit counseling within 180 days before filing from an approved nonprofit organization.

How the Chapter 13 Process Works

1

Determine Eligibility & Complete Counseling

Verify you meet all Chapter 13 requirements and complete the mandatory credit counseling course from an approved provider.
2

File Paperwork & Automatic Stay

Submit comprehensive financial documents including tax returns. Once filed, creditors are immediately prohibited from collections, foreclosures, and lawsuits.
3

Creditors' Meeting & Plan Confirmation

Attend the required meeting with trustee and creditors, then present your repayment plan at a confirmation hearing for court approval.
4

3-5 Year Repayment Period

Make consistent monthly payments to the court trustee, who distributes funds to creditors according to your approved plan.
4

3-5 Year Repayment Period

Make consistent monthly payments to the court trustee, who distributes funds to creditors according to your approved plan.
5

Complete Education & Receive Discharge

Finish your debtor education course and successfully complete all plan payments to receive discharge of remaining eligible debts.

Chapter 13 Bankruptcy Costs

Prior Bankruptcy History

$313

Standard court and trustee administrative fees (can be included in payment plan).

Attorney Fees

$3,000 - $5,000

Higher than Chapter 7 due to 3-5 year case management (often included in payment plan).

Credit Education

$50 - $100

Required credit counseling (pre-filing) and debtor education (post-filing) courses.

Good News: Most Chapter 13 costs can be spread out over your 3-5 year payment plan, so you typically need very little upfront to begin the process.
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Why Work With an Attorney?

Professional guidance ensures the best outcome

While Chapter 13 may seem straightforward, having experienced legal counsel dramatically increases your chances of success and maximizes debt elimination.
Peace of Mind: No legal mistakes or case dismissals
Free Consultation: Understand all your debt relief options
Asset Protection: Keep maximum property through exemptions
Support & Guidance: An ally throughout the entire process
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Disclaimer

Bankruptcy Center of Utah is a debt relief agency that serves, among others, indebted consumers under the U.S. Bankruptcy Code. This advertising provides general information only. Only after a client actually counsels directly with an attorney can the client rely on the specific services that Bankruptcy Center of Utah will provide or understand the benefits and risks that may result from becoming a debtor in a bankruptcy case.

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