How long does a Chapter 13 last? A payment plan approved by the court in Chapter 13 bankruptcy lasts either three years or five years depending on whether your family’s income is below or above the state’s median income average. If your family income is above the state’s median income average, the plan is five years. In some cases, a below median debtor can also have a five-year plan even though the default period is three years.
The state’s median income average depends on family size. The income average for each family size is computed from time to time. Thus, the number changes periodically. Call us if you need to know the current median income average for your family.