How Chapter 13 Bankruptcy Works


You can use Chapter 13 bankruptcy to get out from under the burden of your debts, protect important property, and stop bill collectors.



Chapter 13 bankruptcy works by giving you an installment plan for paying all or part of your debts over time. If you want to file for bankruptcy but earn too much to qualify for Chapter 7, you may still be eligible for Chapter 13.

Select your state from the list on this page to get a local overview of the Chapter 13 process, including:

  • Advantages of Chapter 13
  • Chapter 13 Payment Plans
  • Debts You Can Discharge
  • Debts You Can’t Discharge
  • Chapter 13 Bankruptcy Exemptions
  • Figuring Out if You’re Eligible
  • How to File for Bankruptcy


Figuring Out If You’re Eligible for Chapter 13

You may qualify for Chapter 13 bankruptcy if you have a steady income and your debts are worth less than the dollar amounts set by federal bankruptcy law. In 2022, the debt limits changed:

Chapter 13 Debt Limits, adjusted for inflation, as of April 1, 2022:

New Temporary Chapter 13 Debt Limits as of June 21, 2022 until June 21, 2024.

Senate Bill # 3823, signed by President Biden on June 21, 2022, increased the Chapter 13 debt limit under 109(e) to $2.75 millionand allows both secured and unsecured debt to count towards this single limit. This change expires in two years from the date of signing (June 21, 2024) if it is not made permanent.


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Jurisdictional relevance: ST

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