This article is for informational purposes only—Ascend does not provide legal advice. If you’d like to speak with a bankruptcy attorney who serves your area, you can get a free consultation by calling 833-272-3631.
If you're struggling with debt and looking for a way out, you might consider Chapter 13 bankruptcy. It can be a powerful tool to stop foreclosure, keep assets that might be lost in Chapter 7, and protect you from creditors.
But here's the thing—why do less than half of Chapter 13 cases succeed? And how can you estimate your monthly payment before making a decision?
The Reality of Chapter 13 Bankruptcy Success Rates
Filing for Chapter 13 isn't just about submitting paperwork and waiting for relief. It’s a structured repayment plan that lasts 3 to 5 years, and only 38.8% of cases actually result in debt discharge, according to an 2010-2015 American Bankruptcy Institute study.
That number plummets to 2.3% for those filing without an attorney.
One of the biggest reasons people don’t complete their Chapter 13 plans?
The cost.
Understanding how much you’ll need to pay each month is crucial before you commit to filing. That’s why estimating your Chapter 13 plan payment upfront can make all the difference.
How to Estimate Your Chapter 13 Payment for Free
You enter some basic details about your debt, income, and expenses.
We process that information through the same forms used in bankruptcy court.
You get an estimated monthly Chapter 13 plan payment and helpful insights on costs, alternatives, and pros and cons.
This free tool can give you clarity before you take the next step.
Chapter 13 vs. Chapter 7 – What’s the Difference?
Chapter 7 bankruptcy is often the cheapest and fastest debt relief option. The
bankruptcy attorney fees are often lower, and individuals can get debt forgiveness in as little as 3-4 months WHILE getting protected from their creditors. That said, many people may opt for Chapter 13 because they don’t qualify for Chapter 7 due to income or assets that wouldn’t be protected under bankruptcy exemptions.
It personalizes the comparison based on your financial situation, giving you cost and duration estimates for both options.
How Chapter 13 Works
At its core, Chapter 13 is a debt reorganization plan that helps you pay off what you owe over time, often with lower payments. Here’s what makes it unique:
Stops foreclosure so you can keep your home.
Restructures secured debts like car loans, potentially lowering your monthly payments.
Protects co-signers by preventing creditors from going after them.
Consolidates debt into a single monthly payment managed by a trustee.
It’s also important to note that Chapter 13 doesn’t erase debt instantly—it just makes repayment more manageable.
The Downsides of Chapter 13 Bankruptcy
While Chapter 13 has advantages, it’s not for everyone. Some of the key drawbacks include:
It can impact your credit score for up to 7 years.
Yo may need to commit to a 3-5 year repayment plan.
Any increase in income could increase your monthly payment.
You may not be able skip payments—even in tough months.
If you’re in a 100% repayment plan, you might end up fully paying all your unsecured debt.
Who Qualifies for Chapter 13 Bankruptcy?
Not everyone can file for Chapter 13. To qualify, you must have:
Less than $419,275 in unsecured debt (like credit cards and medical bills).
Less than $1,257,850 in secured debt (like mortgages and car loans).
Debt limits adjust over time, so checking the latest numbers is essential.
Additionally, if you've missed court appearances in the past 180 days or haven't completed required credit counseling, you may not be eligible.
The Chapter 13 Bankruptcy Process
Filing for Chapter 13 isn’t something you can do overnight. Here’s what to expect:
File a petition with your local bankruptcy court.
Submit financial documents, including income, expenses, and tax returns.
Complete a repayment plan proposal.
Attend a court hearing to get your plan approved.
Make payments to a court-appointed trustee.
Stick to the plan for the next 3 to 5 years.
If you don’t follow through, your case could be dismissed, leaving you back at square one.
Can You Make Chapter 13 Bankruptcy Work for You?
Success in Chapter 13 comes down to having a realistic plan and sticking to it. Many people fail because they underestimate their payment amounts or don’t fully understand the costs involved.
That’s why using a calculator to estimate your plan payment before filing is so important.
Bankruptcy may be a big decision, but knowing your options can help you make the best choice for your financial future.
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