Tue Sep 02 2014   

Bankruptcy Law Research Guide:
Chapter 13 Bankruptcy

What is Chapter 13 bankruptcy?

Chapter 13 of the Bankruptcy Code allows individuals or businesses with regular income to reorganize debts. The debtor is allowed to keep most property and pay creditors through the bankruptcy trustee over a period of time, usually three to five years.

How much does it cost to file a Chapter 13 bankruptcy?

The filing and administrative fee to file a Chapter 13 bankruptcy is $274.00, effective April 9, 2006. You can check to see if fees have changed here: www.uscourts.gov/bankruptcycourts/fees.html.

Who is eligible to file for Chapter 13 bankruptcy?

Any person is eligible for chapter 13 relief as long as her unsecured debts are less than $307,675 and secured debts are less than $922,975. 11 U.S.C. § 109(e).

A debtor may not file under Chapter 13 or any other chapter if a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or willful failure to comply with orders of the court, and may not refile within 180 days of voluntary dismissal of a prior petition when creditors sought relief from the bankruptcy court. 11 U.S.C. §§ 109(g), 362(d) and (e).

What is the process?

The process is described in detail on the United States Bankruptcy Courts Bankruptcy Basics, How Chapter 13 Works website.

Page Updated:  6 November 2008