How Chapter 13 Works
One monthly payment to a trustee for 3 to 5 years, then a discharge. Here's what sets the payment, where the money goes, and what happens if you fall behind.
Talk through your plan
Philadelphia & South Jersey
Chapter 13 Bankruptcy Lawyer
Chapter 13 bankruptcy is a court-approved repayment plan that folds what you owe into one affordable monthly payment over 3 to 5 years, so you can stop foreclosure, catch up on the mortgage or the car, and keep them both. We handle Chapter 13 cases across Philadelphia, South Jersey, and everywhere else in Pennsylvania and New Jersey, with clear pricing and payment plans, entirely by phone or Zoom.
Catch up on your own terms
Chapter 13 is the keep-your-stuff chapter. The court approves a single monthly payment built around your real budget, your creditors have to accept it, and you cure what you're behind on over the life of the plan. No need to come to an office, and no judgment from us. We serve people across Greater Philadelphia and all of South Jersey, and everywhere else in Pennsylvania and New Jersey.
What Chapter 13 does
- Catch up on mortgage arrears
- Stop foreclosure proceedings
- Roll your debts into one payment
- Stop repossession and catch up on car loans
What you keep
- Your home, by catching up on missed payments over the plan
- Your car, even if you have fallen behind
- Property a Chapter 7 might not protect
- Your co-signers, who are protected during the plan
The Chapter 13 Roadmap
A clear path to catching up and keeping what matters.
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Step 1 of 13
Free consultation
Phone or Zoom, zero obligation. We look at your income, your arrears, and what you're trying to save, then tell you straight whether Chapter 13 fits.
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Step 2 of 13
Credit counseling
A required online course, about an hour, finished before your Chapter 13 case can be filed.
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Step 3 of 13
We gather your documents
Pay stubs, tax returns, and the full picture of your mortgage or car arrears. You dig them up, we build the case around them.
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Step 4 of 13
We build your plan
One monthly payment over 3 to 5 years, shaped around your real budget, that catches up your arrears while the regular payments continue.
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Step 5 of 13
We file
The moment we file, the automatic stay generally stops foreclosure, repossession, garnishment, and collection calls, even a sheriff sale already on the calendar.
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Step 6 of 13
Your first payment
Your first plan payment is due within 30 days of filing, even before the court confirms the plan. We make sure it's a number you can live with.
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Step 7 of 13
Meeting of creditors
A short video meeting with the Chapter 13 trustee, often five minutes. We prep you so it's a non-event.
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Step 8 of 13
The trustee reviews your plan
The trustee audits the plan math: your budget, your arrears, and what unsecured creditors receive. Small tweaks here are normal.
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Step 9 of 13
Plan confirmation
The court confirms the plan and it becomes binding. Every creditor has to follow it, including your mortgage company.
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Step 10 of 13
You make your payments
One payment a month to the trustee, who pays your creditors. In most cases your regular mortgage payment continues alongside it. Keep them up and you stay protected.
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Step 11 of 13
Debtor education course
One more quick online course, finished before the plan wraps up.
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Step 12 of 13
You finish the plan
After 3 to 5 years, the arrears are cured and every obligation in the plan is met.
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Step 13 of 13
Discharge
The court enters your discharge under Section 1328(a) of the Bankruptcy Code, wiping out the remaining qualifying debt. You're done, and you kept what matters.
Free with every case
We will help you get to a 720 credit score
It will not take long to rebuild your credit because we give you the tools to do it. 7 Steps to a 720 Credit Score is a free bonus course, included with your case, that walks you step by step toward a 720 credit score.
Follow the steps and you could be back to a great score in no time: qualifying for low-interest cards, saving thousands on car and home loans, and never again dreading a credit check from a landlord or employer.
Related guides
Common questions about Chapter 13
Is Chapter 13 right for me?
It usually is if you are behind on a mortgage or car and want to keep them, or if your income is too high for Chapter 7. We will tell you honestly which chapter fits your situation in your free consultation.
Will I lose my house or car?
No. Keeping them is the whole point of Chapter 13. You catch up on the missed payments through the plan and keep your home and car as long as you keep up with it.
How long does Chapter 13 take?
The plan runs 3 to 5 years, and the length isn't arbitrary: income below your state's median generally means a 3-year plan, above it means 5. The relief starts immediately either way, since the automatic stay stops collection the moment we file.
Will it stop foreclosure?
Yes. Filing triggers the automatic stay, which generally halts foreclosure immediately. Then the plan uses what Section 1322(b)(5) of the Bankruptcy Code calls cure and maintain: you pay off the missed mortgage payments over 3 to 5 years while keeping up the regular monthly payment, and your lender has to accept it.
How much will my plan payment be?
It is based on your income, your expenses, and what you owe. We will discuss this in your free consultation before anything is filed.