David M. Siegel answers in 34 seconds. Watch on YouTube · Read the transcript.
Short answer: Three to five years, with a hard maximum of 60 months. The case is filed within a few days to a week, the meeting of creditors comes about four weeks later, and then the plan is confirmed and runs its term. Many clients pay theirs off early.
Why it is measured in years
Chapter 13 is not a discharge you wait for — it is a repayment plan you perform. The length exists because the plan has to gather what you can afford to pay over a period long enough to make the payment survivable. Five years is the statutory ceiling.
Whether the plan runs three years or five depends largely on income relative to the Illinois median and on what has to be repaid in full, such as mortgage arrears.
The first two months
Getting the case on file takes a few days to a week once the paperwork is together. The meeting of creditors follows about four weeks after that. Then the plan goes to confirmation, where the trustee and any creditors weigh in and the judge approves it.
Protection does not wait for confirmation. The automatic stay applies from the filing date, which is why a Chapter 13 can be filed against a foreclosure sale date only days away.
Paying it off early
A lot of our clients finish ahead of schedule. A tax refund, a bonus, a sale, an inheritance, or simply a raise can retire a plan early — there is no prepayment penalty.
The reverse is also true. If income drops, the plan can often be modified rather than dismissed. Losing a job during year three is not the disaster people fear, provided you tell your attorney immediately rather than missing payments quietly.
What you get at the end
When the plan completes, the remaining dischargeable balances are wiped out. If the plan repaid ten percent of your unsecured debt, the other ninety percent is gone.
The mortgage is current, the car is yours, the arrears are cleared. Three to five years is a long time, but it is a finite time with a defined end — which is more than an unmanageable debt load offers.
Wondering whether a plan payment would be affordable?
The consultation is free and there is no obligation. You will find out what you qualify for, which debts can be eliminated, what it costs, and what the payment plan looks like.
Wheeling: (847) 520-8100 Chicago: (773) 276-6969
Your case is handled by phone — you do not need to come into either office. Even the meeting of creditors is held on Zoom. We represent clients across the Northern District of Illinois: Cook, DuPage, Grundy, Kane, Kendall, Lake, LaSalle and Will counties.
Full transcript of the video
how long does Chapter 13 bankruptcy case take well it takes a few days or a week or so to get the case officially filed you appear at a meeting of creditors approximately four weeks after that filing date and then from there we attempt to get the case confirmed or approved for the payment plan from that point the case can typically last anywhere from three to five years you do have the ability in many cases to pay it off quicker and a lot of our clients do that but the maximum length of time that it could last would be five years which is 60 months
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About the author. David M. Siegel has represented consumer bankruptcy clients in the Northern District of Illinois since 1991 and is the author of several books on consumer bankruptcy. The firm has offices at 790 Chaddick Drive, Wheeling, IL 60090 and 10540 S. Western Ave, Suite 202, Chicago, IL 60643, and handles cases by phone for clients throughout the Chicago area.
This article is general information about Illinois and federal bankruptcy law. It is not legal advice, and reading it does not create an attorney-client relationship. Every case turns on its own facts — speak with an attorney about yours.