Reorganization through a court-approved plan.
Chapter 13 lets individuals repay some or all of their debts over three to five years, while protecting property and catching up on past-due amounts like mortgage or car payments.
Facing Foreclosure in South Carolina?
If you are behind on your mortgage, a Chapter 13 plan may help stop a scheduled foreclosure sale and give you a structured way to catch up on past-due payments while you stay in your home.
Behind on house or car
Chapter 13 can help you cure arrears over time while keeping your home or vehicle, if you stay on track with the plan.
Regular income
If you have steady income but are overwhelmed by debt, a Chapter 13 plan can organize payments and stop collection pressure.
What Chapter 13 does
- Stops most collection, foreclosure, and repossession efforts.
- Creates a structured repayment plan based on your budget.
- Discharges remaining eligible debt after successful plan completion.
How the repayment plan works
- One monthly payment to the Chapter 13 trustee, who distributes funds to creditors.
- Priority debts (like certain taxes and support) and secured arrears are typically paid first.
- Unsecured creditors may receive a percentage of what is owed, depending on your income and assets.
Is Chapter 13 a good option?
- You have regular income and can commit to a monthly payment.
- You want to keep property that might be at risk in a Chapter 7.
- You need time to catch up on a mortgage, car, or tax debt.
Chapter 13 in 6 steps
Review your goals, debts, income, and expenses.
The automatic stay begins; your proposed plan is filed with the court.
In most cases, payments start within 30 days of filing.
You answer questions under oath from the trustee about your finances.
The court decides whether to approve your plan as proposed or amended.
After successful payments and required courses, eligible debts are discharged.
Staying on track
- Payments are usually made through TFS Bill Pay, wage withholding, or another approved method.
- Missing payments can put your case at risk; communicate early if something changes.
- Major changes in income or expenses may require a plan modification.
Common questions
How long does a Chapter 13 plan last?
Most plans last three to five years, depending on your income and debt structure.
Can I pay off my plan early?
In some cases, paying early may be possible, but it can affect how much must be paid to unsecured creditors. Ask your attorney before making large lump-sum payments.
Do I keep making my regular mortgage payment?
Often, you continue paying your regular mortgage outside the plan while the arrears are paid through the plan. The specifics depend on your case.
What happens if my income changes?
Significant changes should be discussed with your attorney. The plan may need to be modified or other options explored.
Informational only — does not create an attorney-client relationship or constitute legal advice.