Bankruptcy
Chapter 13 Bankruptcy
Chapter 13 lets an individual with regular income keep their property and repay creditors under a court-approved plan, usually over three to five years.
It is the option for people who are behind on a mortgage or car loan and want to catch up rather than surrender the collateral. The debtor makes one monthly payment to a trustee, who distributes it among creditors under the confirmed plan.
Completing the plan produces a discharge of remaining eligible debts. Many cases do not finish, and a debtor who cannot keep up may convert to Chapter 7 or have the case dismissed.
The plan payment is the heart of the case. Objections from the trustee or a mortgage lender usually concern feasibility or how much unsecured creditors receive, and amended plans are filed until confirmation or dismissal.
How it appears on a docket
CHAPTER 13 PLAN filed proposing 60 monthly payments of $845. Confirmation hearing set for 4/9/2026. Trustee's objection due 14 days prior.
Governing rule
11 U.S.C. ch. 13
Related terms
- Trustee — A bankruptcy trustee is the person appointed to administer a bankruptcy estate: gathering assets, reviewing claims, and distributing money to creditors.
- Discharge — A discharge is the bankruptcy court order releasing the debtor from personal liability for most debts, so creditors can never collect them again.
More on bankruptcy
See this term in a real case
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