Who can file Chapter 13 bankruptcy?
Chapter 13 is a court-supervised repayment plan for an individual with regular income. It can allow a person to propose paying all or part of their debts over three to five years while addressing issues such as mortgage arrears, vehicle loans, taxes, and other obligations. The eligibility analysis is more than a quick income test: debt limits, prior filings, credit counseling, tax returns, and a feasible payment plan can all matter.
This page summarizes the core federal questions using current U.S. Courts Chapter 13 guidance. Bankruptcy law and local court practice are fact-specific. A licensed attorney should review your income, debts, property, and prior-case history before you decide whether to file.
2026 Chapter 13 debt limits
Reviewed October 21, 2026. The U.S. Courts’ current Chapter 13 guidance states that an individual may be eligible if noncontingent, liquidated unsecured debts are less than $526,700 and secured debts are less than $1,580,125 as of the filing date. These figures are federal thresholds, not a result or eligibility guarantee for any person.
The current separate limits apply to cases filed on or after April 1, 2025. A temporary combined Chapter 13 threshold of $2,750,000 expired on June 21, 2024, so older pages may show an amount that is no longer the current test. The published 2025 federal-court adjustment table lists the prior $465,275 unsecured and $1,395,875 secured limits and the current adjusted amounts.
| Debt category | Current amount for cases filed on or after April 1, 2025 | Examples to review carefully |
|---|---|---|
| Unsecured debt | Less than $526,700 | Credit cards, medical bills, personal loans, and other debts not secured by collateral |
| Secured debt | Less than $1,580,125 | Mortgages, vehicle loans, and debts secured by a lien on property |
How the debt categories are assessed
Debt-limit analysis can be technical. Whether an obligation is secured, unsecured, disputed, contingent, liquidated, or counted in the limit may depend on the debt, the schedules, and applicable law. Do not rely on a rough estimate when you are close to either threshold. A bankruptcy lawyer can review the proposed schedules and discuss whether Chapter 11 bankruptcy information or another option should be considered.
Regular income and a feasible plan
Chapter 13 is often called a wage-earner plan, but regular income can take different forms. The U.S. Courts explains that an individual must have income that is sufficiently stable and regular to fund a repayment plan. The person may be self-employed or operate an unincorporated business if the other requirements are met.
A feasible plan must reflect the household’s actual budget. The analysis may include current income, ordinary living costs, arrears, secured debts, tax obligations, and required plan payments. Learn how a Chapter 13 repayment plan works, then discuss your facts with a local attorney rather than assuming a generic estimate applies to you.
Credit counseling, taxes, and prior cases
- Credit counseling: A person generally must complete credit counseling from an approved agency within 180 days before filing, subject to limited statutory exceptions.
- Tax records: The U.S. Courts says that the Chapter 13 trustee receives the most recent tax return or transcript and returns filed during the case. Required pre-filing tax-return issues can affect the case.
- Prior dismissals: A dismissal in the prior 180 days can create filing restrictions in certain circumstances. Review the earlier court record with counsel.
- Prior discharge: A previous bankruptcy discharge can affect whether you can receive a new discharge in Chapter 13. Read about filing Chapter 13 after Chapter 7 for the four-year discharge rule and the questions it does not answer by itself.
When Chapter 13 may be worth comparing with Chapter 7
Chapter 7 and Chapter 13 solve different problems. Chapter 7 is generally faster, while Chapter 13 can offer a structured payment approach for people with regular income who need to address certain property or debt issues. Compare Chapter 7 and Chapter 13 before choosing a path. The right chapter depends on your goals, property, income, debt types, and local rules.
Questions to bring to a consultation
- Do my current secured and unsecured debts fit within the Chapter 13 limits?
- Is my income regular enough to propose a realistic plan?
- Which debts, arrears, liens, or assets will shape the plan?
- Do a prior filing or dismissal affect my options?
- Would Chapter 7, Chapter 13, Chapter 11, or a non-bankruptcy solution better match my goals?
Find Chapter 13 attorneys near you to request a local consultation. This information is general education and not legal advice.
