How to Prepare a Chapter 13 Case Around Income, Arrears, and Feasible Payments

For many people, Chapter 13 is less about eliminating debt overnight and more about building a payment structure the court can actually approve and the filer can realistically live with for three to five years. That is why income, arrears, and feasibility tend to sit at the center of almost every Chapter 13 case.

A Chapter 13 case is available to individuals with regular income, and it generally allows debts to be repaid over time under a court-approved plan while the filer keeps property. The bankruptcy court looks closely at whether the proposed plan is feasible—in other words, whether the numbers appear workable on paper and in real life. The court also looks at whether required debts are treated correctly, whether arrears are addressed, and whether the filer is contributing projected disposable income when the Code requires it. The federal judiciary’s Bankruptcy Basics overview, the official Chapter 13 disposable income form, and the text of 11 U.S.C. § 1325 all point back to those themes.

In this post you’ll learn how people and their attorneys often prepare a Chapter 13 case around three practical questions:

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1. How stable and documentable is the income?
2. How large are the arrears that have to be cured through the plan?
3. Can the proposed monthly payment survive scrutiny from the trustee, creditors, and the court?

If you want a broader foundation first, it may help to start with this overview of how Chapter 13 repayment plans and arrears typically work.

Why Income, Arrears, And Feasibility Drive The Whole Case

Chapter 13 is often described as a repayment chapter for people with regular income. The federal courts use that phrase repeatedly because regular income is what makes the entire structure possible. Under 11 U.S.C. § 109(e), Chapter 13 is for an individual with regular income who falls within the debt-limit rules for the chapter. Those debt limits were adjusted effective April 1, 2025, and the current limits are published in the Federal Register adjustment notice.

But “regular income” is only the beginning. A Chapter 13 plan also has to account for:

• Arrears, such as past-due mortgage payments, car payments, taxes, or domestic support obligations
• Ongoing obligations, such as the regular monthly mortgage payment that comes due after filing
• Priority claims, which often include certain taxes and domestic support obligations
• Administrative costs, including filing fees, trustee percentages, and often some attorney fees paid through the plan
• Projected disposable income, which is measured through the official Chapter 13 forms and tested at confirmation

The court generally holds a confirmation hearing no later than 45 days after the meeting of creditors and decides whether the plan satisfies the confirmation standards, including feasibility, according to the judiciary’s Chapter 13 Basics page.

That practical reality is why many Chapter 13 cases rise or fall on preparation. A case may look possible in theory, yet still run into trouble if income is irregular, arrears were underestimated, or the monthly payment leaves no room for ordinary life.

Step 1: Identify All Sources Of Regular Income