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Chapter 13 Bankruptcy: The Complete Guide

Everything you need to know about Chapter 13 repayment plans -- who qualifies, how the plan works, what you can keep, the step-by-step process from filing to discharge, and what the actual completion data shows. Written in plain English, backed by 4.9 million federal cases.

Table of Contents
  1. What Is Chapter 13 Bankruptcy?
  2. Who Qualifies for Chapter 13?
  3. How the Repayment Plan Works
  4. What Debts Get Paid?
  5. What Property Can You Keep?
  6. Saving Your Home from Foreclosure
  7. Saving Your Car
  8. The Chapter 13 Process Timeline
  9. Step 1: Credit Counseling
  10. Step 2: Filing the Petition and Proposing a Plan
  11. Step 3: The Automatic Stay
  12. Step 4: The 341 Meeting of Creditors
  13. Step 5: Plan Confirmation
  14. Step 6: Making Payments
  15. Step 7: Plan Modification
  16. Step 8: Discharge
  17. The Chapter 13 Super Discharge
  18. How Much Does Chapter 13 Cost?
  19. Chapter 13 Completion Rates -- What the Data Shows
  20. Can You File Chapter 13 Again?
  21. Frequently Asked Questions

1. What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a reorganization process for individuals with regular income. Instead of giving up your property like in Chapter 7, you propose a repayment plan that lasts 3 to 5 years. You make a single monthly payment to a bankruptcy trustee, who distributes the money to your creditors according to the plan. When you complete the plan, remaining qualifying debts are discharged -- meaning you no longer owe them.

Chapter 13 is governed by 11 U.S.C. Sections 1301 through 1330. It is sometimes called the "wage earner's plan," though self-employed individuals with regular income also qualify.

The core idea is straightforward: you commit your disposable income -- what you earn minus what you reasonably need to live -- to paying creditors for a set period. In exchange, you keep your property, get protection from creditors, and get a fresh start at the end.

Key Concept

Chapter 13 is the only bankruptcy chapter that lets individual debtors cure mortgage arrears, strip junior liens, and cram down car loans -- all while keeping every piece of property they own. This makes it the primary tool for saving homes and cars from foreclosure and repossession.

Chapter 13 differs from other chapters in important ways. Unlike Chapter 7, there is no liquidation of assets. Unlike Chapter 11, it is designed for individuals rather than businesses, is simpler, and is less expensive. Unlike Chapter 12, it is not limited to farmers and fishermen.

The trade-off is time. Chapter 7 cases are typically over in about 4 months. Chapter 13 requires 3 to 5 years of monthly payments before you receive a discharge. And as the data shows, the majority of people who start Chapter 13 do not finish -- a fact that carries serious consequences.

2. Who Qualifies for Chapter 13?

Chapter 13 is available to individuals (including sole proprietors) who meet two requirements:

  1. Regular income. You must have a sufficiently stable and regular source of income to make plan payments. This includes wages, salary, commissions, self-employment income, Social Security, disability, pension, and even regular contributions from a spouse or partner. The income does not need to come from a traditional job -- it just needs to be predictable enough that the court can rely on it for a multi-year plan.
  2. Debt below the limit. Your total debts -- secured and unsecured combined -- must fall below the statutory ceiling.
11 U.S.C. Section 109(e) -- Debt Limits

As of the Bankruptcy Threshold Adjustment and Technical Corrections Act of 2022, the combined debt limit for Chapter 13 is $2,750,000 for both secured and unsecured debts. Previously, there were separate caps for secured debts ($1,395,875) and unsecured debts ($465,275). The 2022 law consolidated these into one combined limit. Congress adjusts this threshold periodically -- always check the current figure before filing.

There is no means test for Chapter 13. Unlike Chapter 7, you do not need to prove that your income is below the state median to be eligible. However, your income level determines how long your plan must last:

Corporations and partnerships cannot file Chapter 13 -- only individuals (including married couples filing jointly). If you owe more than $2,750,000 or run a large business, Chapter 11 may be the appropriate alternative.

Important Requirement

You must be current on your tax filing obligations to file Chapter 13. Under Section 1308, you must have filed all required tax returns for the 4 years before your bankruptcy petition. If you have not filed tax returns, get them filed before you file your petition. Courts will dismiss cases where the debtor is not current on tax filings.

3. How the Repayment Plan Works

The Chapter 13 plan is the heart of the case. It is a written proposal that tells the court and your creditors exactly how you will pay your debts over the next 3 to 5 years. You file the plan with your bankruptcy petition or within 14 days of filing.

What goes into the plan

A Chapter 13 plan typically addresses:

Disposable income

The amount you must pay into the plan is driven by your disposable income -- defined under Section 1325(b) as your current monthly income minus reasonably necessary expenses for the maintenance and support of you and your dependents. If you are above median income, the expenses are calculated using IRS National and Local Standards rather than your actual spending.

The disposable income test is the most commonly litigated part of Chapter 13. Trustees frequently object to plans they believe understate income or overstate expenses. Getting this calculation right is critical to plan confirmation.

Plan length

The "applicable commitment period" determines how long your plan must last:

Income LevelMinimum Plan LengthMaximum Plan Length
Below state median36 months60 months
At or above state median60 months60 months

Below-median debtors can propose a shorter plan, but only if the plan pays all unsecured creditors in full. Above-median debtors must commit to the full 5 years unless they pay 100% of unsecured claims earlier.

4. What Debts Get Paid?

Not all debts are treated equally in Chapter 13. The Bankruptcy Code establishes a strict priority system that determines who gets paid first. Your plan must respect this hierarchy.

Priority order

PriorityDebt TypePayment Required
1Administrative claims (trustee fees, attorney fees)Paid in full
2Domestic support obligations (child support, alimony)Paid in full, current and arrears
3Priority tax claims (recent income taxes, trust fund taxes)Paid in full
4Secured claims (mortgage, car loan, tax lien)Paid based on collateral value or contract terms
5General unsecured claims (credit cards, medical bills, personal loans)Pro rata share of remaining funds (can be 0-100%)

How unsecured creditors get paid

After priority and secured claims are covered, whatever money is left over goes to general unsecured creditors on a pro rata basis. In many Chapter 13 cases, unsecured creditors receive only a small percentage of what they are owed -- sometimes as low as 0% in what is called a "zero-percent plan." This is legal as long as the plan satisfies the Section 1325 requirements.

The percentage unsecured creditors receive depends on three factors:

  1. How much disposable income you have after necessary expenses
  2. How much must go to priority and secured claims first
  3. The "best interest of creditors" test -- unsecured creditors must receive at least as much as they would have received in a Chapter 7 liquidation

5. What Property Can You Keep?

This is one of Chapter 13's biggest advantages: you keep all of your property. There is no liquidation in Chapter 13. The trustee does not take your house, your car, your bank accounts, or your personal belongings.

In Chapter 7, a trustee can sell your non-exempt property to pay creditors. In Chapter 13, you keep everything -- but the trade-off is that your plan must pay unsecured creditors at least as much as they would have received if your non-exempt property had been liquidated. This is called the "best interest of creditors" test under Section 1325(a)(4).

Example

Say you own a boat worth $5,000 that is not covered by any bankruptcy exemption. In Chapter 7, the trustee could sell the boat and distribute the proceeds to creditors. In Chapter 13, you keep the boat -- but your plan must pay at least $5,000 to unsecured creditors over its life. You are essentially "buying back" your non-exempt property through your plan payments.

This makes Chapter 13 especially attractive for people who have significant non-exempt property -- equity in a home beyond what exemptions cover, valuable vehicles, business equipment, investments, or collections. Instead of losing them, you pay their value over time through the plan.

6. Saving Your Home from Foreclosure

Saving a home from foreclosure is one of the most common reasons people file Chapter 13. The Code provides powerful tools for this purpose.

Curing mortgage arrears

Under Section 1322(b)(5), your Chapter 13 plan can cure a mortgage default over the life of the plan while you resume making regular monthly mortgage payments going forward. This means if you are 6 months behind on your mortgage, you can spread those missed payments across 3 to 5 years and catch up gradually.

The automatic stay stops the foreclosure the moment you file, giving you breathing room to propose a plan. As long as your plan is confirmed and you make both your regular mortgage payments and the plan payments to cure the arrears, the mortgage company cannot foreclose.

The Anti-Modification Rule

Section 1322(b)(2) prohibits modifying the terms of a mortgage secured only by the debtor's principal residence. You cannot reduce the interest rate, extend the term, or reduce the principal balance of your home mortgage through a Chapter 13 plan. You can only cure the default and maintain regular payments. This rule has been upheld by the Supreme Court in Nobelman v. American Savings Bank (1993).

Lien stripping on junior liens

If your home is worth less than the balance of your first mortgage, any second mortgage or home equity line of credit (HELOC) is wholly unsecured -- the junior lienholder's claim is not supported by any equity in the property. In this situation, Chapter 13 allows you to "strip" the junior lien entirely through a process governed by Section 506(a) and Section 1322(b)(2).

When a lien is stripped, the junior mortgage is reclassified as an unsecured debt and treated like credit card debt in your plan. At the end of the case, the lien is removed from your property. This can eliminate tens or even hundreds of thousands of dollars in debt.

Lien stripping is not available in Chapter 7. This is one of the most valuable tools unique to Chapter 13.

7. Saving Your Car

Chapter 13 offers two powerful tools for dealing with car loans: the cramdown and general loan modification.

Cramdown

If you purchased your vehicle more than 910 days (approximately 2.5 years) before filing, you can "cram down" the car loan under Section 506(a). This means you pay only the current value of the vehicle -- not the remaining loan balance. The difference is treated as unsecured debt.

Example

You owe $15,000 on a car that is now worth $8,000, and you purchased it 3 years ago. Through a cramdown, your Chapter 13 plan would pay the secured portion ($8,000) plus interest at the court-determined rate over the plan period. The remaining $7,000 is treated as unsecured debt and may receive only pennies on the dollar -- or nothing.

The 910-day rule (the "hanging paragraph")

There is a critical limitation. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) added what is commonly called the "hanging paragraph" after Section 1325(a)(9). If you purchased the vehicle within 910 days of filing, you cannot cram down the loan -- you must pay the full contract balance to keep the vehicle. This rule was designed to protect recent car lenders.

Count your days carefully. The 910-day cutoff is measured from the date of purchase (not the loan date) to the date of filing. If you are close to the 910-day line, it may be worth waiting to file.

Interest rate reduction

Even when a cramdown is not available, Chapter 13 can reduce the interest rate on a car loan to a court-determined rate based on the "prime plus" formula established by the Supreme Court in Till v. SCS Credit Corp. (2004). This can significantly reduce your monthly payment compared to the original contract rate, especially if you financed the vehicle at a high interest rate through a subprime lender.

8. The Chapter 13 Process Timeline

A Chapter 13 case follows a defined sequence. Here is the full timeline from start to finish:

StepTiming
Credit counseling course (required)Within 180 days before filing
File petition, schedules, and proposed planDay 0
Automatic stay takes effectImmediately upon filing
Begin plan payments to trusteeWithin 30 days of filing (before confirmation)
341 meeting of creditors21 to 50 days after filing
Deadline for creditor objections to planVaries (usually 25-30 days after 341 meeting)
Confirmation hearing20 to 45 days after 341 meeting
Plan payments continue (3 to 5 years)Monthly during plan period
Debtor education course (required)Before discharge
Final payment and trustee's reportAfter all plan payments completed
Discharge enteredAfter plan completion and debtor education certification

An important detail: you must start making plan payments to the trustee within 30 days of filing -- even before the plan is confirmed. This is required by Section 1326(a)(1). If the plan is not confirmed, or if you proposed a different payment amount than what is ultimately confirmed, the trustee adjusts. But you cannot wait until confirmation to start paying.

9. Step 1: Credit Counseling

Before you can file any bankruptcy petition, you must complete a credit counseling course from an agency approved by the U.S. Trustee's office. This is required by Section 109(h).

The course must be completed within 180 days before filing. It can be done online, by phone, or in person and typically takes about 60 to 90 minutes. The cost ranges from $15 to $50, though fee waivers are available for debtors who cannot afford it.

The credit counseling agency will provide a certificate of completion that you must file with the court. If you file without the certificate, your case may be dismissed. This is not the same as the "debtor education" course required before discharge -- that is a separate course taken later (Step 8).

A list of approved agencies is available at justice.gov.

10. Step 2: Filing the Petition and Proposing a Plan

Filing a Chapter 13 case requires submitting a package of documents to the bankruptcy court:

The filing fee is $313 (as of 2024). You can request to pay the filing fee in installments if you cannot afford to pay it all at once.

Bare Petitions

Some attorneys file a "bare petition" -- the petition alone, without schedules, plans, or supporting documents -- to invoke the automatic stay quickly. The remaining documents are then due within 14 days. While this can be a legitimate emergency strategy (for example, to stop a foreclosure sale scheduled for the next day), it also carries risks. If the missing documents are not filed on time, the case will be dismissed. See What Is a Bare Petition? for more detail.

Cases are filed in the bankruptcy court for the district where the debtor has lived for the greater part of the prior 180 days. If you recently moved, the proper venue may be your old district. Filing in the wrong district can cause delays and transfers.

11. Step 3: The Automatic Stay

The moment your petition is filed, the automatic stay takes effect under Section 362. This is a federal court order that immediately stops virtually all creditor collection activity:

The automatic stay applies to all creditors, even those who have not yet received notice of the filing. Any creditor who knowingly violates the stay can be held liable for actual damages, costs, attorney fees, and in some cases punitive damages under Section 362(k).

Chapter 13 Co-Debtor Stay

Chapter 13 includes a unique protection not found in other chapters: the co-debtor stay under Section 1301. This stay protects co-signers and guarantors on consumer debts. If a friend or family member co-signed a loan with you, the creditor cannot go after the co-signer while your Chapter 13 case is active and the debt is being paid through your plan. This co-debtor stay is exclusive to Chapter 13.

Repeat Filers -- Reduced Stay Protection

If you had a bankruptcy case dismissed within the past year, the automatic stay in your new case lasts only 30 days under Section 362(c)(3) unless you file a motion to extend it. If you had two or more cases dismissed in the past year, no automatic stay takes effect at all under Section 362(c)(4) -- you must affirmatively ask the court to impose one. This is one of the most serious consequences of serial filing.

For a deeper explanation, see our Section 362 Automatic Stay Guide or visit automaticstay.org.

12. Step 4: The 341 Meeting of Creditors

Within 21 to 50 days after filing, you must attend the Section 341 meeting of creditors. Despite its name, creditors rarely attend. The meeting is typically conducted by the Chapter 13 trustee assigned to your case.

At the 341 meeting, the trustee will:

The meeting typically lasts 5 to 15 minutes. It is not held in front of a judge -- it takes place in a meeting room, often at the courthouse or trustee's office. Many districts now conduct 341 meetings by phone or video.

Answer questions honestly and directly. Providing false testimony at a 341 meeting is a federal crime (18 U.S.C. Section 152). If you do not know the answer to a question, say so. If the trustee identifies issues with your petition or plan, you will typically have the opportunity to amend.

For more on what to expect, see What Happens at the 341 Meeting? or visit 341meeting.org.

13. Step 5: Plan Confirmation

After the 341 meeting, the court holds a confirmation hearing to decide whether to approve your plan. This is the most important hearing in a Chapter 13 case. Under Section 1325(a), the court must find that the plan satisfies all of the following requirements:

  1. Good faith. The plan must be proposed in good faith and not by any means forbidden by law. Courts look at the totality of circumstances -- whether the plan is a genuine attempt to repay debts or an abuse of the system.
  2. Best interest of creditors. Unsecured creditors must receive at least as much under the plan as they would have received in a Chapter 7 liquidation. This is calculated by adding up the value of your non-exempt property.
  3. Disposable income / best efforts. If the trustee or an unsecured creditor objects, you must commit all of your projected disposable income for the applicable commitment period (3 or 5 years) to the plan.
  4. Feasibility. The debtor must be able to make all payments under the plan. If the budget is unrealistic, the court will deny confirmation.
  5. Secured creditor treatment. The plan must properly treat secured claims -- either paying the allowed secured claim in full with interest, surrendering the collateral, or obtaining the creditor's consent.
  6. Priority claims paid in full. All priority claims (domestic support obligations, taxes, etc.) must be paid in full through the plan.
  7. Domestic support obligations current. The debtor must be current on all post-petition domestic support obligations at the time of confirmation.
  8. Tax returns filed. Required tax returns for the 4 years before filing must have been filed.

If the trustee or a creditor objects to the plan, you may need to amend it. Common objections include:

The confirmation hearing typically takes place 20 to 45 days after the 341 meeting. If no one objects and the plan meets all requirements, confirmation can be quick. If there are objections, it may take multiple hearings and amended plans before the court confirms.

14. Step 6: Making Payments

Once the plan is confirmed, you make monthly payments to the Chapter 13 trustee for the duration of the plan (3 to 5 years). The trustee then distributes the money to your creditors according to the confirmed plan.

Payroll deduction

Many districts encourage or require plan payments through payroll deduction under Section 1325(c). Your employer deducts the plan payment directly from your paycheck and sends it to the trustee. This makes it easier to stay on track and avoids the risk of spending money you need for plan payments.

If you are self-employed or payroll deduction is not available, you make payments directly to the trustee -- typically by check, money order, or electronic payment.

What the trustee does with the money

The Chapter 13 trustee is not a creditor. The trustee is an independent fiduciary who collects your payments and distributes them to creditors according to the confirmed plan. The trustee also monitors your compliance with the plan and can file motions to dismiss your case if you fall behind on payments.

The trustee's fee is a percentage of the amounts disbursed -- typically 4% to 10% depending on the district. This fee is built into your plan payment, so you do not pay it separately.

Falling Behind on Payments

If you miss plan payments, the trustee will file a motion to dismiss your case. Dismissal means the automatic stay is lifted, all creditors can resume collection, and you lose the benefits of the plan. If you are struggling to make payments, consider requesting a plan modification before you fall too far behind. Communication with the trustee is critical.

Other obligations during the plan

While your case is pending, you must:

15. Step 7: Plan Modification

Life changes over 3 to 5 years. Your income may go up or down. You might lose a job, get a raise, have a medical emergency, or face unexpected expenses. Section 1329 allows you to modify your confirmed plan to account for changed circumstances.

A plan modification can be requested by the debtor, the trustee, or an unsecured creditor. Common modifications include:

The modified plan must still satisfy all the requirements of Section 1325 -- good faith, best interest of creditors, disposable income, and feasibility. The court will hold a hearing and creditors have the right to object.

Practical Tip

Do not wait until you are months behind on payments to request a modification. If your circumstances change, contact your attorney or the trustee immediately. Courts are far more receptive to proactive modification requests than to attempts to salvage a case that is already in default. A modification is a sign that you are trying to succeed. Ignoring a payment problem is a path to dismissal.

16. Step 8: Discharge

If you complete all plan payments and satisfy all requirements, the court enters a discharge order under Section 1328(a). The discharge permanently eliminates your legal obligation to pay most remaining debts. Creditors are prohibited from ever collecting on discharged debts by the discharge injunction under Section 524.

Requirements for discharge

Before the court will enter a discharge, you must:

  1. Complete all plan payments
  2. Complete the post-petition debtor education course
  3. Certify that all domestic support obligations are current
  4. Certify that you have not received a discharge in a prior case within the Section 1328(f) time bars
  5. Not have been convicted of certain felonies or have pending proceedings under Section 522(q)

Section 1328(a) discharge vs. Section 1328(b) hardship discharge

There are two types of Chapter 13 discharge:

Section 1328(a) -- full compliance discharge. This is the standard discharge granted when you complete all plan payments. It eliminates all debts provided for by the plan except those specifically excluded by Section 1328(a)(1) through (4) -- primarily domestic support obligations, certain student loans, criminal restitution, and debts for personal injury caused by drunk driving.

Section 1328(b) -- hardship discharge. If you cannot complete the plan due to circumstances beyond your control (serious illness, disability, job loss), you can request a hardship discharge. This is a narrower discharge -- it applies the same exceptions as Chapter 7 under Section 523(a), which means it does not include the super discharge protections. To qualify, you must show that (1) the failure to complete is due to circumstances beyond your control, (2) creditors have received at least as much as they would have in a Chapter 7 liquidation, and (3) modification of the plan is not practicable.

17. The Chapter 13 Super Discharge

One of Chapter 13's most valuable features is its broader discharge scope compared to Chapter 7. This is informally known as the "super discharge." Under Section 1328(a), Chapter 13 discharge has fewer exceptions than Chapter 7 discharge under Section 523(a).

Debts that Chapter 13 can discharge but Chapter 7 cannot:

Debt TypeChapter 7Chapter 13
Willful and malicious injury to property (Section 523(a)(6))Not dischargedDischarged
Non-support divorce/separation debts (Section 523(a)(15))Not dischargedDischarged
Government fines/penalties (non-tax, Section 523(a)(7))Not dischargedDischarged
Post-petition HOA/condo fees (Section 523(a)(16))Not dischargedDischarged
Debts from prior case where discharge was waived (Section 523(a)(10))Not dischargedDischarged

Note that the super discharge was narrowed by BAPCPA in 2005. Before that, Chapter 13 could discharge even more types of debt. Also note that willful and malicious injury to persons remains nondischargeable in both chapters -- only property damage gets the super discharge treatment.

Hardship Discharge Is Not a Super Discharge

The super discharge only applies to the Section 1328(a) discharge -- the one you earn by completing all plan payments. If you receive a hardship discharge under Section 1328(b), the standard Chapter 7 exceptions under Section 523(a) apply. This is one more reason to do everything possible to complete your plan.

For more detail, see What Is a Super Discharge?

18. How Much Does Chapter 13 Cost?

The total cost of Chapter 13 includes several components:

ItemTypical CostNotes
Court filing fee$313Can be paid in installments
Credit counseling course$15 to $50Required before filing
Debtor education course$15 to $50Required before discharge
Attorney fees$2,500 to $6,000+Varies by district; often paid through plan
Trustee fee4% to 10% of disbursementsBuilt into plan payments

No-look fees

Many bankruptcy districts have adopted "no-look" fees -- a flat fee amount that courts will approve for attorney compensation in Chapter 13 without requiring detailed time records. These vary widely by district, typically ranging from $3,000 to $5,500. The no-look fee is designed to streamline the process and reduce litigation over fees.

If an attorney wants to charge more than the no-look fee, they must file a detailed fee application under Section 330 and the court must approve the higher amount after review.

How attorney fees are paid

In Chapter 13, attorney fees are typically paid through the plan itself. The attorney may collect a retainer upfront (often $0 to $1,500), and the balance is paid through plan distributions over the life of the case. This means you do not need to come up with the full attorney fee before filing, which makes Chapter 13 more accessible than Chapter 7 for many people.

Fee Incentive Problem

Because attorney fees in Chapter 13 are paid through the plan, the attorney gets paid regardless of whether the case succeeds. If the case is dismissed after 2 years, the attorney has already been paid from plan distributions, but the client received no discharge and still owes all their debts. This creates a structural incentive problem: some attorneys file cases they know are unlikely to succeed because they get paid either way. The failure rate data suggests this is not a theoretical concern.

19. Chapter 13 Completion Rates -- What the Data Shows

This is the section most guides will not give you, because most guides do not have the data. We do.

~33-40%
National Discharge Rate
~48%
National Dismissal Rate
4.9M
Cases Analyzed

Based on analysis of 4.9 million federal bankruptcy cases in the FJC Integrated Database across 94 federal districts, the data tells a stark story: the majority of people who file Chapter 13 do not successfully complete it.

Nationally, approximately 33% to 40% of Chapter 13 cases end in discharge -- meaning the debtor completed all plan payments and received the legal elimination of remaining debts. Roughly 48% are dismissed before completion. The remaining cases are converted to other chapters, are still pending, or have other dispositions.

What This Means in Plain Terms

If you file Chapter 13, you are statistically more likely to fail than to succeed. A majority of Chapter 13 debtors commit to 3-to-5-year repayment plans, make payments for months or years, and then have their cases dismissed -- losing the time, the money already paid in, and the discharge they were working toward. They end up back where they started, except they have less money and less time.

Year-by-year trends (cases with time to complete)

For cases filed between 2008 and 2019 -- years where cases have had enough time to reach completion -- the filing, discharge, and dismissal patterns reveal the scope of the problem:

Year FiledCases FiledDischargedDismissedDischarge Rate
20083,0701,6351,32953.3%
20093,0421,9481,00064.0%
20103,3692,1501,08663.8%
20113,3192,1291,02664.2%
20122,8211,70594760.4%
20132,8461,6101,03456.6%
20143,2821,7551,22953.5%
20153,3191,6621,27450.1%
20163,6301,7541,32148.3%
20173,9371,9791,37450.3%
20184,4372,3081,45452.0%
20195,5442,6091,55747.1%

Source: FJC Integrated Database. Discharge rates for recent years (2021+) are artificially low because 5-year plans have not yet completed. Only cases filed 2008-2019 are shown for mature data.

Why so many cases fail

The reasons for Chapter 13 failure are varied, but the most common include:

Geographic variation

Chapter 13 completion rates vary dramatically by federal district. Some districts see discharge rates above 60%, while others consistently fall below 30%. This variation reflects differences in local legal culture, trustee practices, judicial approaches, attorney quality, and debtor demographics. The gap between the best and worst districts is enormous -- your odds of Chapter 13 success depend significantly on where you live.

Explore district-by-district data on our Chapter 13 Failure Rate page and Success Rate by State page.

Explore the full failure rate data

National statistics from 4.9 million cases across 94 federal districts. District-level breakdowns, attorney comparisons, and trend analysis.

View Chapter 13 Failure Rates

20. Can You File Chapter 13 Again?

You can always file a new Chapter 13 case. There is no limit on how many times you can file. However, whether you can receive a discharge depends on Section 1328(f).

The 1328(f) discharge bars

Prior Discharge InWaiting PeriodMeasured How
Chapter 7, 11, or 124 yearsFiling date to filing date
Chapter 132 yearsFiling date to filing date

This is the trap that catches many people. If you received a Chapter 7 discharge and then file Chapter 13 within 4 years, you can still file the case, get the automatic stay, and make plan payments for 3 to 5 years -- but at the end, the court will deny your discharge. You will have made years of payments for nothing.

The same is true if you received a prior Chapter 13 discharge and refile within 2 years. The bar prevents discharge, not filing.

The Hidden Danger

Section 1328(f) does not prevent you from filing. It does not prevent you from making plan payments. It only prevents you from getting a discharge at the end. This means a debtor (or an attorney who fails to check) can go through the entire Chapter 13 process -- 3 to 5 years of payments -- only to discover at the end that no discharge is available. This is why the eligibility screener exists.

Check your eligibility before filing

Enter your prior discharge dates to see if the 1328(f) bar applies to you.

Use the 1328(f) Screener

For a full explanation of the timing rules, see Section 1328(f) Explained, Can I File Bankruptcy Again?, and How Long Between Bankruptcies?.

21. Frequently Asked Questions

Will Chapter 13 stop a foreclosure?

Yes. The automatic stay stops a foreclosure the moment you file, even if the sale is scheduled for the same day. Your Chapter 13 plan can then cure the mortgage arrears over 3 to 5 years while you resume regular payments. However, you must actually be able to afford the ongoing mortgage payment plus the plan payment. If your income cannot support both, the plan will not be confirmed or will eventually fail.

Will Chapter 13 stop a car repossession?

Yes, as long as the car has not already been sold. The automatic stay prevents repossession. If your vehicle was repossessed before filing but has not yet been sold, filing Chapter 13 can force the creditor to return it under the "turnover" provisions of Section 542. Once the case is filed, your plan can address the car loan through regular payments, cramdown (if eligible), or surrender.

Can I buy a car during Chapter 13?

Only with court permission. While your Chapter 13 case is pending, you cannot take on new debt without filing a motion and getting court approval. If your existing vehicle breaks down and you need a replacement, you can file a motion to incur debt. The court will evaluate whether the purchase is necessary and whether you can afford it without compromising your plan payments.

What happens to my credit score?

A Chapter 13 filing stays on your credit report for 7 years from the filing date. Your credit score will drop significantly when you file. However, making consistent plan payments and receiving a discharge can begin to rebuild your credit. Many people who complete Chapter 13 find their credit score recovers faster than they expected because the debt-to-income ratio improves dramatically. For more detail, see How Long Does Bankruptcy Stay on Credit?

Can I convert Chapter 13 to Chapter 7?

Yes. Under Section 1307(a), you have an absolute right to convert your Chapter 13 case to Chapter 7 at any time. This can be useful if your financial circumstances change and you can no longer afford plan payments. However, converting to Chapter 7 means your non-exempt property may be liquidated, and you lose the benefits of the Chapter 13 super discharge. You must also qualify under the Chapter 7 means test.

What debts can Chapter 13 NOT discharge?

Even the Chapter 13 super discharge has limits. The following debts survive a Chapter 13 discharge under Section 1328(a):

Do I need an attorney for Chapter 13?

You are legally allowed to file Chapter 13 without an attorney (called filing "pro se"), but it is strongly discouraged. Chapter 13 is procedurally complex. The plan must comply with multiple sections of the Code, interact with dozens of creditors, survive trustee scrutiny, and be administered for 3 to 5 years. Pro se Chapter 13 cases have significantly higher dismissal rates than represented cases. If cost is a concern, remember that attorney fees in Chapter 13 are typically paid through the plan, which reduces the upfront financial barrier.

What is the difference between dismissed and discharged?

Discharged means you successfully completed the plan and the court permanently eliminated your remaining qualifying debts. This is the goal. Dismissed means the case was terminated before completion -- you did not get a discharge, all your debts survive, and creditors can resume collection. Dismissal is not a fresh start. It is a reset to where you were before, except you have spent time and money on a process that produced no result.

Chapter 7 vs. Chapter 13: Full Comparison

Chapter 7Chapter 13
Duration~4 months3 to 5 years
PropertyNon-exempt assets liquidatedKeep everything
Means testRequiredNot required
Regular incomeNot requiredRequired
Mortgage arrearsCannot cure through planCan cure over plan period
Car cramdownNot availableAvailable (910+ days)
Lien strippingNot availableAvailable for junior liens
Co-debtor stayNoYes (Section 1301)
Discharge scopeNarrower (Section 523(a))Broader (super discharge)
Repeat filing bar8 years (727(a)(8))4 years / 2 years (1328(f))
Credit report10 years7 years
Completion rate~95%+~33-40%

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Chapter 13 plans: chapter13plan.org -- Chapter 13 plan structure and confirmation guide

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