- Chapter 13 at a glance
What it is
A court-approved repayment plan, not a liquidation
Stops
Foreclosure, repossession, wage garnishment, frozen bank accounts
Plan length
36 to 60 months, depending on income and affordability
Unsecured debt
Usually repaid at pennies on the dollar, not in full
What you keep
Your house, your car and your possessions
Cost to start
From $0 down if you are W2 employed. Attorney fees are paid through your plan, subject to court approval.
- CURRENT PRICING
$0
down · Chapter 13 for W2 employed filers. Not including vehicle/repossession cases. Attorney fees are paid through your plan, subject to court approval.
36–60
month plan, set by income
$313
court filing fee
What Chapter 13 actually does
Chapter 13 is a repayment plan approved by the bankruptcy court. Instead of liquidating what you own, you make one monthly payment to a trustee for 36 to 60 months, and the trustee distributes it among your creditors. Secured debts like a mortgage or a car loan are brought current through the plan. Unsecured debts are paid whatever your income can afford.
It is the chapter people use when there is something they need to protect: a house with arrears, a car they cannot lose, a garnishment already taking money out of every cheque. Filing puts the automatic stay in place and replaces whatever is happening now with one fixed, affordable payment.
The best part of Chapter 13? You get to keep your stuff.
Will I lose my house or my car?
In most Chapter 13 cases, no. The plan exists so you can keep secured property while you catch up on what is behind. Mortgage arrears are folded into the plan and paid across its length, and a scheduled sale is stopped as long as you keep the plan payment and the ongoing mortgage payment current.
Cars work the same way. A vehicle facing repossession can be kept and, in some cases, paid for through the plan at a figure the court approves. What is protected in your own case depends on Michigan exemptions and on the numbers, and that is the first thing we work out on the call.
What it stops the day we file
In most cases, the automatic stay takes effect the moment the petition is filed. It stops:
- A scheduled foreclosure sale
- Repossession of your vehicle
- Wage garnishment
- A frozen bank account
- Collection calls and letters
If you have a sheriff’s sale date or an active garnishment, timing matters more than anything else on this page. Call rather than filling in a form.
How long the plan runs
Plans run 36 to 60 months. Which applies depends on your income measured against the Michigan median and on what the plan has to pay for. A plan can be completed early if circumstances change, and it can be adjusted if your income drops during the case.
What you actually pay back
The plan payment is built from what you can afford after reasonable living expenses, not from the total of what you owe. Secured arrears, priority debts such as recent taxes and support obligations, and the trustee fee are paid in full through the plan.
Unsecured creditors — credit cards, medical bills — are not paid back everything you owe. In most cases they are paid pennies on the dollar. Whatever remains unpaid at the end of the plan is discharged.
What it costs to start
For W2 employed filers, Chapter 13 starts from $0 down. Attorney fees are paid through the plan and approved by the court, and the court filing fee can be paid in installments.
You should not have to book a consultation to find out what something costs. That is why the figures are on this page.
Do I qualify?
Chapter 13 requires regular income, debts within the statutory limits, and a plan that pays creditors at least what they would receive in a Chapter 7. Most people who are working and trying to protect a house or a car qualify. We check the means test and your disposable income on the first call, before you commit to anything.
Chapter 13 or Chapter 7?
The two chapters do different jobs. This is the short version.
| Question | Chapter 13 | Chapter 7 |
|---|---|---|
| What it is | A repayment plan | Not a payment plan |
| Your property | You keep your stuff | In some cases you can lose property |
| Duration | 36–60 months | About 4 months |
| Cost to start | From $0 down, W2 employed | From $1,499 down, single filers |
| Unsecured debt | Usually pennies on the dollar | Most of it discharged |
| Mortgage arrears | Caught up through the plan | Not addressed |
| On your credit | 7 years from filing | 10 years |
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