Filing for bankruptcy can be an overwhelming and complicated process. However, it is sometimes necessary to alleviate financial burdens and start anew. Chapter 13 bankruptcy is a viable option for those who have a steady income and want to keep their assets while paying off their debts over time. In this article, we will guide you through the steps to file Chapter 13 bankruptcy yourself.
Understanding Chapter 13
Chapter 13 is also known as reorganization bankruptcy. It allows individuals with regular income to create a repayment plan to pay back their debts over a period of three to five years. This repayment plan is based on the individual’s income and expenses, and it typically includes secured debts such as mortgages and car loans, as well as unsecured debts such as credit card debt and medical bills.
Eligibility for Chapter 13 Bankruptcy
To be eligible for Chapter 13 , you must have a regular income and unsecured debts that are less than $419,275 and secured debts that are less than $1,257,850. You must also have completed credit counseling within six months before filing for bankruptcy. Additionally, you cannot have filed for Chapter 7 bankruptcy within the past four years or Chapter 13 bankruptcy within the past two years.
How To File Chapter 13 Bankruptcy: Step By Step

Filing the Petition
To file for Chapter 13 bankruptcy, you will need to complete and file a petition with the bankruptcy court in your area. The petition will include your personal information, a list of your creditors and debts, and a statement of your financial affairs. You will also need to pay a filing fee or request a fee waiver if you cannot afford the fee.
Completing the Bankruptcy Schedules
Along with the petition, you will need to complete several bankruptcy schedules that provide detailed information about your income, expenses, assets, and debts. These schedules will include information about your monthly income and expenses, your secured and unsecured debts, your property and exemptions, and any other financial transactions or contracts.
Creating the Repayment Plan
The Chapter 13 repayment plan is a critical part of the bankruptcy process. It outlines how you will pay back your debts over a period of three to five years. The plan will be based on your income and expenses, and it will prioritize secured debts such as mortgages and car loans. You will also need to include payments for unsecured debts such as credit cards and medical bills.
Meeting with the Trustee

After you file your petition and schedules, you will need to attend a meeting with the bankruptcy trustee. The trustee will review your case, ask you questions about your financial situation, and verify the information in your bankruptcy forms. This meeting is also an opportunity for your creditors to ask questions or object to your repayment plan.
Confirmation of the Repayment Plan
Once you have met with the trustee and any objections to your repayment plan have been resolved, the bankruptcy court will confirm your plan. This means that your creditors are bound by the terms of the plan, and you can begin making payments to the trustee to pay off your debts.
Making Payments to the Trustee
Under the Chapter 13 repayment plan, you will make monthly payments to the bankruptcy trustee, who will distribute the payments to your creditors. These payments will be based on your income and expenses, and they will continue for three to five years until your debts are paid off.
Completing the Bankruptcy Course
Before your bankruptcy case can be discharged, you must complete a financial management course from an approved agency. This course will provide you with information on how to manage your finances and avoid future financial problems.
Discharge of the Bankruptcy Case
Once you have completed all of the requirements of your Chapter 13 repayment plan, your bankruptcy case will be discharged. This means that your debts will be considered paid in full, and you will no longer be responsible for any remaining balances. However, some debts, such as student loans and tax debts, may not be dischargeable.
Rebuilding Your Credit
After your bankruptcy case is discharged, it is important to start rebuilding your credit. You can do this by obtaining a secured credit card, making timely payments, and keeping your balances low. It may take time to rebuild your credit, but it is possible with patience and diligence.
Conclusion
Filing for Chapter 13 bankruptcy can be a challenging process, but it is a viable option for those who want to alleviate their financial burdens and start anew. By understanding the steps of filing for Chapter 13 bankruptcy yourself, you can take control of your finances and move towards a brighter financial future.
FAQs

What is Chapter 13?
Chapter 13 is a type of bankruptcy that allows individuals with regular income to restructure their debts and create a payment plan to pay off their debts over a period of three to five years.
Who is eligible for Chapter 13?
Individuals with regular income and unsecured debts under $419,275 and secured debts under $1,257,850 are eligible for Chapter 13 bankruptcy.
How does it work?
After filing for Chapter 13 bankruptcy, the individual creates a payment plan to pay off their debts over three to five years. During this time, creditors cannot pursue collection efforts.
What debts can be included?
Most types of debts can be included in Chapter 13 bankruptcy, including credit card debts, medical bills, personal loans, and some tax debts.
What are the benefits of filing?
Chapter 13 bankruptcy can help individuals avoid foreclosure, catch up on missed mortgage or car payments, and reduce their overall debt burden.
How long does it stay on your credit report?
Chapter 13 bankruptcy stays on your credit report for seven years from the filing date.
Can you file for it multiple times?
Yes, you can file for Chapter 13 bankruptcy multiple times, but the waiting period between filings varies depending on the circumstances.
Can you keep your assets in Chapter 13 bankruptcy?
In most cases, individuals can keep their assets in Chapter 13 bankruptcy as long as they continue to make payments according to their payment plan.
What happens if you miss a payment?
If you miss a payment in Chapter 13 bankruptcy, your case may be dismissed and creditors can resume collection efforts.
How long does it take to complete Chapter 13 bankruptcy?
Chapter 13 bankruptcy typically takes three to five years to complete, depending on the payment plan created by the individual.
Glossary
- Chapter 13 bankruptcy: A type of bankruptcy that allows individuals with regular income to develop a plan to repay all or part of their debts over a period of three to five years.
- Debtor: An individual or business that owes money to a creditor.
- Creditor: A person or organization to whom money is owed.
- Bankruptcy petition: A legal document filed with the court that initiates the bankruptcy process.
- Automatic stay: An order issued by the court that prohibits creditors from taking any action to collect debts from the debtor.
- Plan confirmation: The process by which the bankruptcy court approves the debtor’s repayment plan.
- Trustee: A court-appointed individual who oversees the administration of the bankruptcy estate and the debtor’s repayment plan.
- Discharge: A court order that releases the debtor from liability for certain debts.
- Secured debt: Debt that is backed by collateral, such as a mortgage or car loan.
- Unsecured debt: Debt that is not backed by collateral, such as credit card debt or medical bills.
- Priority debt: Debt that must be paid first in a bankruptcy case, such as taxes or child support.
- Exempt property: Property that is protected from liquidation in a bankruptcy case.
- Means test: A calculation to determine whether the debtor’s income is low enough to qualify for Chapter 7 bankruptcy.
- Credit counseling: A requirement for all bankruptcy filers to receive counseling from an approved agency before filing for bankruptcy.
- Bankruptcy court: A specialized court that handles bankruptcy cases.
- Bankruptcy estate: All property and assets that are subject to liquidation in a bankruptcy case.
- Proof of claim: A document filed by a creditor in a bankruptcy case that outlines the amount of money owed.
- Reaffirmation agreement: An agreement between the debtor and creditor to continue paying a debt that would otherwise be discharged in bankruptcy.
- Adversary proceeding: A separate legal action filed within a bankruptcy case, such as a dispute with a creditor over a debt.
- Liquidation: The process of selling assets to pay off debts in a bankruptcy case.
- File bankruptcy: Filing bankruptcy means to legally declare that an individual or business is unable to pay off their debts and seeks protection from their creditors.