To file Chapter 13 bankruptcy, you don’t need any minimum amount of debt, but you cannot exceed the federal debt ceilings: as of the April 1, 2025 adjustment currently in effect, your unsecured debts must be under $526,700 and your secured debts under $1,580,125.1Office of the Law Revision Counsel. 11 USC 109 – Who May Be a Debtor You also need a regular source of income, because Chapter 13 works by funding a court-supervised repayment plan that lasts three to five years.
No Minimum Debt Is Required
Nothing in the Bankruptcy Code sets a dollar floor for Chapter 13. Technically, you could file with $1,000 in debt. The real question is whether it makes financial sense.
The court filing fee alone is $313. Attorney fees for a Chapter 13 case typically run $3,000 to $5,000, though most of that gets folded into your repayment plan rather than paid up front. On top of that, the Chapter 13 trustee collects a percentage fee on every payment you make, capped by federal law at 10 percent and commonly falling between 4 and 10 percent depending on the district.2Office of the Law Revision Counsel. 28 U.S. Code 586 – Duties; Supervision by Attorney General
If your total debt is small enough that you could clear it in a few months of focused repayment, filing costs more than the debt itself. Bankruptcy makes sense when the debt is genuinely unmanageable, not merely inconvenient.
The Maximum Debt Limits
The debt ceilings for Chapter 13 are set by federal statute and adjusted every three years for inflation. The most recent adjustment took effect April 1, 2025, and applies through the current cycle. To qualify, you must owe less than:
- $526,700 in unsecured debt — credit cards, medical bills, personal loans, and other debts not backed by collateral.1Office of the Law Revision Counsel. 11 USC 109 – Who May Be a Debtor
- $1,580,125 in secured debt — mortgages, car loans, and other debts where the lender can repossess collateral if you default.1Office of the Law Revision Counsel. 11 USC 109 – Who May Be a Debtor
Exceeding either limit disqualifies you from Chapter 13. Both caps apply, so being under one but over the other still knocks you out.
Which Debts Actually Count
Only debts that are both non-contingent and liquidated count toward the caps. A debt is liquidated when the dollar amount is fixed and certain, like a $15,000 credit card balance. A debt is non-contingent when you already owe it, without some future event needing to happen first. A potential liability from a lawsuit that hasn’t been decided is typically contingent and unliquidated, so it wouldn’t count toward the caps.
Getting the classification right matters. If you’re close to either limit, a debt incorrectly categorized as secured when it’s actually unsecured, or the other way around, could push you over the line in one category and lead to dismissal. Have a bankruptcy attorney audit your debts before filing if you’re anywhere near the ceilings.
How Mortgage Arrears Fit In
Your full mortgage balance counts toward the secured debt limit, and past-due payments on that mortgage are generally treated as part of the secured claim. Catching up on those arrears through your plan while keeping your home is one of the main reasons people choose Chapter 13 in the first place, as long as you resume making regular mortgage payments going forward.3United States Courts. Chapter 13 – Bankruptcy Basics If your mortgage balance alone puts you near the $1,580,125 secured cap, adding a car loan or other secured debt could disqualify you.
If You Owe Too Much for Chapter 13
Debtors who exceed either ceiling are not eligible for Chapter 13. In that situation, a bankruptcy attorney may recommend Chapter 11, which has no debt limit but involves a more complex and expensive process.
Income Matters as Much as Debt
Chapter 13 requires a regular source of income sufficient to fund monthly payments to a court-appointed trustee over the life of your plan. Income can come from wages, self-employment, Social Security, pensions, commissions, or seasonal work.3United States Courts. Chapter 13 – Bankruptcy Basics Without it, you cannot file this chapter, regardless of how much debt you have.
Your income also decides how long your plan lasts. If your income falls below the median for a household of your size in your state, you commit to a three-year plan, though the court can approve a longer one for cause. If your income exceeds that median, the plan generally runs five years.3United States Courts. Chapter 13 – Bankruptcy Basics No plan can go beyond five years.
The court looks at your disposable income, meaning what’s left after subtracting reasonable living expenses from your monthly earnings. Those expense deductions follow IRS National Standards, which set allowable monthly amounts by family size. Current figures include $839 per month for a single person and $2,129 for a family of four for food, clothing, and miscellaneous necessities.4Internal Revenue Service. National Standards: Food, Clothing and Other Items If disposable income after those deductions isn’t enough to fund the proposed payments, the court will not confirm your plan.
Self-Employment and Irregular Income
If you’re self-employed or earn seasonal income, the court calculates your current monthly income by averaging what you received from all sources over the six months before you filed. Courts are split on whether self-employed filers must use gross business revenue or can subtract ordinary business expenses when making that calculation, and the difference can significantly affect your plan length and payment amount. An attorney familiar with how your local court handles this issue can help you prepare accurate figures.
Should It Be Chapter 7 Instead?
If your income is low enough, Chapter 7 may be a better fit. Chapter 7 wipes out most unsecured debts without a multi-year repayment plan. The means test, a comparison of your monthly income against the median income for your state and household size, determines whether Chapter 7 is available to you. People whose income exceeds the state median are generally steered toward Chapter 13, because the law assumes they earn enough to repay at least part of what they owe.3United States Courts. Chapter 13 – Bankruptcy Basics
So the practical picture is this. Low debt and it may not be worth filing at all. High debt above the Chapter 13 ceilings and you’re pushed into Chapter 11. Below-median income and Chapter 7 is likely on the table. Above-median income with debts within the Chapter 13 caps and a steady paycheck to fund a plan, and Chapter 13 is where you land.
Costs You Should Plan For
The court filing fee for Chapter 13 is $313, which includes a $235 filing fee and a $78 administrative fee. Unlike Chapter 7 filers, Chapter 13 filers cannot request a fee waiver or pay in installments; the full amount is due when you file the petition.
Attorney fees are the largest expense. Most bankruptcy courts set a “no-look” fee, a standard amount the court presumes reasonable without requiring the attorney to itemize every hour. These fees typically range from $3,000 to $5,000 and can be higher for complex cases involving self-employment income or motions to reduce liens. Most of the attorney fee is paid through the plan, so you generally only need a few hundred dollars up front to get started.
You also have to complete a credit counseling session with a U.S. Trustee Program–approved agency within 180 days before you file, and a second financial management course after you file but before you receive a discharge.5Office of the Law Revision Counsel. 11 U.S. Code 109 – Who May Be a Debtor Approved providers are listed on the U.S. Department of Justice’s website.6United States Department of Justice. List of Credit Counseling Agencies Approved Pursuant to 11 U.S.C. 111 Each course typically costs $10 to $50. Skip the pre-filing session and the court will dismiss your case.
Between the filing fee, attorney fees, trustee percentage, and counseling costs, the total cost of a Chapter 13 case is meaningful. That’s the reason there’s no floor written into the law but a practical floor written into your budget: the debt has to be large enough that spreading it across a three- to five-year plan actually helps you.