What is the short answer on Chapter 13 bankruptcy?

Chapter 13 is a court-supervised repayment and reorganization chapter for individuals with regular income. It can protect property, cure mortgage or vehicle arrears, restructure eligible debts, and discharge qualifying balances after the debtor completes a three- to five-year plan.

Who can file Chapter 13?

Only an individual or married couple may be a Chapter 13 debtor, including an individual operating a sole proprietorship. A corporation, LLC, or partnership cannot file Chapter 13 in its own name.

What counts as regular income for Chapter 13?

Regular income can include wages, self-employment income, pension or retirement income, Social Security, rental income, support, and other reliable sources. The key issue is whether the income is sufficiently stable to fund the proposed plan and ongoing living expenses.

What are the current Chapter 13 debt limits?

For cases filed on or after April 1, 2025, an individual generally must have less than $526,700 in noncontingent, liquidated unsecured debt and less than $1,580,125 in noncontingent, liquidated secured debt. These federal amounts adjust periodically, so they should be verified again before publication and filing.

Is a Chapter 13 plan three years or five years?

The applicable commitment period is generally three years for a below-median debtor and five years for an above-median debtor, unless unsecured claims are paid in full sooner or another rule applies. Feasibility, arrears, vehicle treatment, taxes, and other plan terms also influence duration.

How is the monthly Chapter 13 payment calculated?

The payment is not a simple percentage of total debt. It must account for disposable income, nonexempt asset value, mortgage and vehicle arrears, priority claims, secured-debt treatment, trustee compensation, attorney fees, and the minimum distribution required by the Bankruptcy Code.

Do I have to repay every debt in full in Chapter 13?

Not always. Secured and priority claims may require specific treatment, while general unsecured creditors may receive anything from a small distribution to full payment depending on income, assets, debt type, and plan requirements. Any qualifying unpaid balance is discharged only after successful completion.

Can Chapter 13 stop a foreclosure in Westchester County?

A filing before the foreclosure sale generally invokes the automatic stay and may create time to propose a plan that cures pre-filing mortgage arrears. The debtor must also address ongoing mortgage payments and satisfy plan and court requirements; filing alone does not permanently eliminate the mortgage.

Can Chapter 13 help me catch up on missed mortgage payments?

Yes. Chapter 13 commonly allows a homeowner to cure pre-filing mortgage arrears over the plan while maintaining required post-filing payments. The plan must be affordable, and the lender may seek stay relief if ongoing obligations are not met.

What is the Southern District of New York Loss Mitigation Program?

The SDNY Loss Mitigation Program provides a court-supervised framework intended to help eligible debtors and mortgage creditors communicate about consensual options such as a loan modification. White Plains has specific forms and orders, and participation does not guarantee a modification.

Can Chapter 13 remove a second mortgage or home-equity lien?

In some cases, a wholly unsecured junior lien may be treated as unsecured and avoided after the required process, but the result depends on property value, senior liens, claim status, and controlling law. A partially secured mortgage on a principal residence is treated differently.

Can Chapter 13 stop a vehicle repossession?

A timely filing may stop a pending repossession and allow arrears or the secured claim to be addressed in the plan, but recovering a vehicle already repossessed can be more difficult and fact-specific. Insurance and post-filing obligations must remain current.

Can Chapter 13 reduce what I owe on a car?

Sometimes. A plan may be able to value eligible vehicle collateral and pay the secured portion with interest while treating the balance as unsecured, but special timing rules apply to vehicles purchased within 910 days before filing and to other recently acquired collateral.

Can Chapter 13 help with tax debt?

Yes, Chapter 13 may provide a structured way to pay priority taxes over the plan while discharging some qualifying nonpriority tax debt. Tax returns generally must be filed, and liens, recent assessments, trust-fund taxes, and penalties require separate analysis.

Can Chapter 13 help with child-support or alimony arrears?

A plan may allow domestic-support arrears to be cured over time, but current obligations must continue and the arrears generally must be paid as required for confirmation and discharge. Support obligations are not erased by bankruptcy.

What is the Chapter 13 co-debtor stay?

For certain consumer debts, Chapter 13 may temporarily protect a co-signer from collection while the case is active. The protection is limited, does not apply to every debt, and a creditor may seek relief if the plan will not pay the claim as required.

Do I keep my property in Chapter 13?

Chapter 13 generally lets a debtor retain property, but the plan must satisfy the best-interests-of-creditors test by paying unsecured creditors at least what they would receive in a Chapter 7 liquidation. Nonexempt value can therefore increase the required plan payment.

Why would someone choose Chapter 13 instead of Chapter 7?

Common reasons include curing mortgage or car arrears, protecting nonexempt property, managing taxes or support arrears, using the co-debtor stay, addressing a junior lien, or obtaining relief when Chapter 7 is unavailable or strategically unsuitable.

Do I keep paying my mortgage during Chapter 13?

Usually, yes. A debtor curing pre-filing arrears generally must also stay current on post-filing mortgage obligations under the plan, court orders, and local practice. Missing ongoing payments can result in stay relief, case dismissal, or loss of the home.

What happens if I miss Chapter 13 plan payments?

The trustee or a creditor may seek dismissal, conversion, or other relief, but a temporary setback does not always end the case. Depending on the cause and timing, the plan may be modified, payments caught up, or another solution requested from the court.

What happens at Chapter 13 confirmation?

Confirmation is the court's approval of the proposed repayment plan. The debtor must satisfy statutory requirements concerning feasibility, good faith, creditor treatment, disposable income, asset value, and required filings; objections may need to be resolved first.

Can a Chapter 13 plan change if my income changes?

Yes, a confirmed plan may sometimes be modified because of job loss, increased income, medical expenses, a sale or refinance, new arrears, or other substantial changes. The debtor should report changes promptly rather than allowing missed payments to accumulate.

Can I pay off Chapter 13 early?

Possibly, but paying the remaining scheduled base amount may not always be enough, especially if unsecured creditors have not been paid in full or disposable-income requirements still apply. A payoff, sale, or refinance should be reviewed before funds are committed.

When do I receive a Chapter 13 discharge?

The discharge generally follows completion of all required plan payments, satisfaction of domestic-support certifications and debtor-education requirements, and entry of the court's discharge order. Some debts survive even after a successful plan.

Can a self-employed person file Chapter 13?

Yes. A self-employed debtor must provide reliable business records, tax returns, bank statements, expense support, and income projections sufficient to show feasibility. Sole-proprietor business assets and debts are included in the individual's case.