What is Chapter 13 Bankruptcy?

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.

From left to right, Alyssa Maloof Whatley, Harrison Kulp, and Kiara Maxie

Alyssa Maloof Whaltey

My goal is to make the tax resolution process as easy and stress free as possible so you can get back to focusing on the things that bring you joy.


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