Chapter 13 Bankruptcy
Save Your Home. Repay on Your Terms.
Chapter 13 lets you reorganize your debt into an affordable repayment plan — and keep your home, car, and other assets.
Get Your Free Debt EvaluationWhat Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy, known as the "wage earner's plan," allows individuals with regular income to reorganize their debts into a structured 3–5 year repayment plan. At the end of the plan, remaining eligible unsecured debts are discharged.
Unlike Chapter 7, Chapter 13 is designed for people who have assets they want to protect — particularly homeowners facing foreclosure. The automatic stay stops foreclosure immediately, and the repayment plan allows you to catch up on missed mortgage payments over time.
Our attorneys at Ashley Bankruptcy Lawyers have helped hundreds of California homeowners and families use Chapter 13 to regain control of their finances and protect what matters most.
Get A Free Debt Evaluation Now
Do You Qualify for Chapter 13?
Chapter 13 is available to individuals who meet the following criteria:
- You have regular income (employment, self-employment, rental income, etc.)
- Your secured debts are below $1,395,875 and unsecured debts are below $465,275 (2024 limits)
- You have not had a bankruptcy dismissed in the past 180 days
Benefits of Chapter 13
Stop Foreclosure Immediately
The automatic stay halts foreclosure the moment you file. Chapter 13 then lets you catch up on missed mortgage payments over 3–5 years.
Keep All Your Property
Unlike Chapter 7, Chapter 13 allows you to keep all your assets — including non-exempt property — as long as you complete your repayment plan.
Catch Up on Missed Payments
Spread past-due mortgage, car, and tax payments over your plan period, making them manageable without losing your property.
Protect Co-Signers
Chapter 13's co-debtor stay protects co-signers on consumer debts from collection activity while your plan is active.
Discharge Remaining Debt
After completing your repayment plan, remaining eligible unsecured debts are discharged — giving you a true fresh start.
Flexible Payment Plans
Your plan payment is based on your disposable income — what you can actually afford — not the full amount you owe.
The Chapter 13 Process
- 1
Free Debt Evaluation
We analyze your income, debts, and assets by phone to design a repayment plan that works for your budget and protects your property — no office visit required.
- 2
File Your Petition & Plan
We file your petition and proposed repayment plan. The automatic stay takes effect immediately, stopping foreclosure and collections.
- 3
Plan Confirmation
The court reviews and confirms your repayment plan. You begin making monthly plan payments to the trustee.
- 4
Complete Your Plan
Make your plan payments for 3–5 years. Upon completion, remaining eligible debts are discharged and you're debt-free.
Frequently Asked Questions
Can Chapter 13 really stop my foreclosure?
Yes. Filing Chapter 13 triggers an automatic stay that immediately halts foreclosure proceedings. Your repayment plan then allows you to catch up on missed mortgage payments over 3–5 years while keeping your home.
How much will my monthly plan payment be?
Your payment is based on your disposable income — what's left after paying your reasonable living expenses. We work to make your plan as affordable as possible.
What if I can't complete my repayment plan?
If your circumstances change, we can often modify your plan. In some cases, a hardship discharge may be available. We'll work with you throughout the process.
How does Chapter 13 differ from Chapter 7?
Chapter 7 eliminates debt quickly (3–6 months) but may require surrendering non-exempt assets. Chapter 13 takes longer (3–5 years) but lets you keep all property and catch up on secured debt like mortgages.
Don't Lose Your Home — Act Now
If you're facing foreclosure or struggling with debt, time is critical. Call us today for a free case evaluation and find out how Chapter 13 can protect your home and give you a fresh start.