San Diego Chapter 13 Bankruptcy Attorneys

If you have steady income but the debt math no longer works — a mortgage in default, a car payment that is too high, tax debt, or simply more owed than you can pay — Chapter 13 bankruptcy is a court-supervised way to reorganize what you owe into one structured plan, usually over 3 to 5 years. It is often called a “reorganization” or a “wage earner’s plan,” and it is the tool our San Diego attorneys reach for when the goal is to keep property — most often a home — rather than simply discharge debt. This page explains what Chapter 13 does, who qualifies, how the plan works, and what the process looks like from your first call to your discharge.

Every case is different, and nothing on this page is a promise about your case. The best way to find out where you stand is a consultation — call (800) 551-7922 or book online.

What Chapter 13 does for you

It stops the collection pressure immediately. The moment your case is filed, the law creates an automatic stay under 11 U.S.C. § 362(a). The automatic stay stops all forms of creditor collection activity — including foreclosures, lawsuits, collection phone calls and letters, wage garnishments, and vehicle repossessions.

It can protect the people who co-signed for you. Chapter 13 has a protection Chapter 7 does not: a co-debtor stay under 11 U.S.C. § 1301. While your case is pending, creditors generally may not pursue a co-signer or other individual who is liable with you on a consumer debt. There are exceptions — for example, where the co-signer became liable in the ordinary course of their own business, or if the case is dismissed or converted — so ask us how this applies to the people who signed alongside you.

It is built to let you keep your property. Instead of liquidating assets, Chapter 13 uses your future income to fund a plan. Past-due mortgage payments can be placed into the plan and cured over time. Property that would not be fully protected by exemptions in Chapter 7 can often be kept by proposing a plan that pays creditors what they would have received in a Chapter 7 case.

It ends in a discharge. When you complete the payments under your confirmed plan, the court grants a discharge under 11 U.S.C. § 1328(a) of most debts provided for by the plan. Some debts survive — for example, long-term obligations like a mortgage you chose to cure and maintain continue on their own terms, domestic support obligations must be current, and certain categories (including most student loans, some taxes, criminal fines and restitution, and debts for willful or malicious personal injury) are not discharged. We map this out for you before you file, so there are no surprises at the end.

Who can file Chapter 13?

The Bankruptcy Code calls Chapter 13 an “Adjustment of Debts of an Individual With Regular Income.” Two things follow from that title. First, only an individual (or a married couple) may file — not a corporation or a partnership. Second, you need regular income sufficient to fund the plan you propose.

There are also debt limits (called “jurisdictional limits”) such that if you have $1,580,125 or more in secured debts or $526,700 or more in unsecured debts (counting only noncontingent, liquidated debts), you won’t be allowed to file Chapter 13 and confirm a Plan. These jurisdictional limits adjust every three years under 11 U.S.C. § 104; the amounts above apply to cases filed April 1, 2025 through March 31, 2028 (Judicial Conference of the United States, Adjustment of Certain Dollar Amounts Applicable to Bankruptcy Cases, 90 Fed. Reg. 8941 (Feb. 4, 2025)).

“Secured debts” are mortgages and other liens on your real estate, vehicles, or other property. The “unsecured debts” that count are debts whose amounts are not in dispute — like credit card balances and judgments. If your debts exceed these limits you can still file Chapter 7, and if you need to reorganize, Chapter 11 remains available — a more costly option that we also handle.

The Chapter 13 plan

The heart of every Chapter 13 case is the Plan — prepared by your attorney in consultation with you and filed with the Bankruptcy Court. The Court must formally approve the plan before it takes effect; that approval process is called confirmation.

A plan must do certain things. It must group creditors into classes of similar debts and treat every creditor in a class the same. It must be feasible — the Court must see evidence that you can actually make the proposed payments. And depending on your income and other factors, it will run 3 to 5 years.

A plan may also do some very useful things:

• Cure a mortgage default over time. Past-due payments go into the plan and are paid back over its term at zero interest, while you keep current on the payments that come due after filing.
• Pay unsecured creditors less than 100%. It is common for San Diego plans to propose a reduced — sometimes very low — payout to unsecured creditors, because most of the debtor’s excess income goes to curing a mortgage or paying priority debts like taxes.
• Restructure vehicle and other secured loans. Where property is worth less than the loan against it, a plan may “split” the debt into a secured portion (the collateral’s value) and an unsecured portion, reducing the effective lien. For a car loan more than 910 days old, the plan may propose a “cram down” of the loan balance to the vehicle’s value, and may also address interest and payment terms.
• Deal with tax debt. Income taxes more than three years old may be dischargeable (subject to additional requirements), and more recent taxes may be repaid through the plan without ongoing interest — often a better outcome than negotiating alone with the IRS.
• Give breathing room on student loans. Most student loans are not discharged, but a plan can usually lower what you pay toward them during the plan term, with remaining amounts deferred while the plan runs.

The Chapter 13 process, step by step

1. Consultation. We listen to your full financial situation, screen the numbers — income, debts, arrears, property — and tell you honestly whether Chapter 13, Chapter 7, or something else fits your goals.
2. Building your plan. We prepare complete, accurate schedules and design a plan around what you need to protect and what you can realistically pay.
3. Filing. The petition and plan are filed with the Bankruptcy Court. The automatic stay under § 362(a) takes effect and collection activity stops; the § 1301 co-debtor stay generally protects co-signers on consumer debts.
4. The 341 meeting. A short meeting of creditors under Bankruptcy Code § 341 — a routine procedure in an informal setting, not a court hearing. Your attorney attends with you and prepares you for the questions to expect.
5. Confirmation. The Court reviews the plan and, when its requirements are met, confirms it. Your plan payments — typically funded from your wages — go to the Chapter 13 Trustee, who distributes them to creditors under the plan.
6. Completion and discharge. When the payments under the plan are complete, the court grants your discharge under § 1328(a), and the discharge injunction protects you going forward.

What the Chapter 13 trustee does

Your case is assigned a Chapter 13 Trustee, who administers the plan: reviewing your paperwork, conducting the § 341 meeting, collecting your plan payments, and distributing them to creditors according to the confirmed plan’s terms and priorities. We work with the San Diego trustees regularly and build plans the way they expect to see them.

Chapter 13 or Chapter 7?

Chapter 7 discharges qualifying debts, usually in a few months, and is generally the right fit when you pass the means test and your debts are mostly unsecured — see our San Diego Chapter 7 page. Chapter 13 is usually the better tool when you are behind on a home or car you want to keep, when your income is too high for Chapter 7’s means test, when you have non-exempt property you want to protect (California’s exemption lists in Code of Civil Procedure § 703 and § 704 still apply in Chapter 13 and shape what the plan must pay), or when your biggest problems are debts — like recent taxes or support arrears — that Chapter 7 cannot restructure. Many people come to us assuming they need one chapter and leave the consultation with a better plan under the other. That conversation is free.

Talk to a San Diego Chapter 13 attorney

Some of our lawyers have handled Chapter 13 cases for decades, and we have prepared thousands of bankruptcy petitions. If your income is steady but the debt is not workable, the next step is a conversation.

Call (800) 551-7922 or book a free consultation.

Frequently asked questions

Can Chapter 13 stop the foreclosure on my home?

Filing creates the automatic stay under 11 U.S.C. § 362(a), which stops a pending foreclosure. Your plan can then take the past-due payments and cure them over the plan term at zero interest while you stay current on the payments that come due after filing. Whether that works in your case depends on your income and arrears — we run those numbers with you at the consultation.

How long does Chapter 13 take?

Plans run 3 to 5 years depending on your income and other factors. If the plan does not pay 100% of the claims against you, the term may stretch from 3 years to 5.

Does Chapter 13 protect my co-signer?

Generally yes, while your case is pending: the co-debtor stay under 11 U.S.C. § 1301 stops creditors from collecting a consumer debt from an individual who is liable on it with you. There are exceptions — including debts the co-signer took on in the ordinary course of their own business, and creditors can ask the court for relief in certain situations — so tell us about every co-signed debt at the consultation.

Do I qualify for Chapter 13?

You must be an individual (or married couple) with regular income, and your debts must be within the jurisdictional limits described above, which adjust every three years under 11 U.S.C. § 104. If you are over the limits, Chapter 7 or Chapter 11 may still be available. We screen eligibility in your first meeting.

What happens if I miss a plan payment?

Life happens over 3 to 5 years, and there are options — depending on the situation, a plan can sometimes be modified, or other relief may be available. The important thing is to talk to your attorney early. See our article on missed Chapter 13 payments, and if you are in an active case, call us.

Can Chapter 13 lower my car payment?

Possibly. Where the loan exceeds the vehicle’s value, a plan may reduce the secured portion to the collateral’s value — a “cram down” — for loans more than 910 days old, and the plan may also address interest and payment terms. Whether your loan qualifies depends on its age and terms.

Which debts are not discharged in Chapter 13?

At completion, the § 1328(a) discharge covers most debts provided for by the plan, but not all. Long-term debts you cured and maintained (like your ongoing mortgage) continue on their terms; domestic support obligations must be certified current; and categories including most student loans, certain taxes, criminal fines and restitution, and debts for willful or malicious injury causing personal injury or death are not discharged. We review your specific debts against these rules before you file.

This page is general information about Chapter 13 bankruptcy, not legal advice, and it does not create an attorney–client relationship. Outcomes depend on your individual circumstances. For advice about your situation, please speak with one of our attorneys.