Chapter 13 Bankruptcy: A Lot Can Happen in 3 to 5 Years

A document titles Chapter 13 Bankruptcy. A pen lays on top of the paper.

When a person files for Chapter 13 bankruptcy, then the automatic stay takes effect, which prohibits all collection activities against the individual. This gives the bankruptcy filer, or “debtor,” some breathing room to devise a Chapter 13 payment plan that typically spans the course of 3 to 5 years. However, a lot can happen in 3 to 5 years: Chapter 13 involuntary dismissal, modifications to the payment plan, a hardship discharge, converting to a Chapter 7 bankruptcy, relief from the automatic stay, and much more.

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