Chapter 13 is a valuable tool that lets you catch up overdue mortgage or car payments, taxes and domestic support obligations. It also applies where you have the ability to repay some or all of your debts over time. You must have less than $383,175 in unsecured debt (such as credit cards and doctor's bills) and less than $1,149,525 in secured debt (such as mortgages and car loans)to qualify for Chapter 13. The filing fee for a Chapter 13 is $310.00.
Under Chapter 13, you keep all of your property, both exempt and non-exempt, as long as you resume making your regular payments on secured debt, keep current under the repayment plan that you propose, and pay to your unsecured creditors as much as they would have received if nonexempt assets were liquidated. In certain circumstances it may be possible to reduce a car payment. A repayment plan can last for up to five years. After finishing your payments, most of your unsecured debts are discharged.