A Chapter 13 is a debt reorganization for individuals with a regular steady source of income. Although there is no test for a Chapter 13, there are limits on the amount of debt that can be handled in a Chapter 13 case. The unsecured debt limit is $394,725.00 and secured debt limit is $1,184,200.00 (valid through 2019). Thus, if a debtor is looking to file a Chapter 13 and their debt exceeds these limits, they will be ineligible.

The Chapter 13 plan allows the debtor to pay back creditors over a three to five year period. A Chapter 13 is used in cases where the debtor does not qualify for a Chapter 7 because their income exceeds the means test or they have property with equity that they would like to keep such as a house or a car.