What Can Be Included in Chapter 13 Bankruptcy?

When people ask what can be included in Chapter 13 bankruptcy, they are usually not asking for a technical list. They want to know whether this process can actually stop the pressure they are under – the missed mortgage payments, the car loan that is falling behind, the IRS notices, the credit cards that never seem to go down, or the lawsuit that is one step away from a garnishment.

Chapter 13 is designed for exactly that kind of situation. It gives people with regular income a court-approved way to reorganize debt over time, often three to five years, while keeping important property and catching up on what has fallen behind. But not every debt is treated the same, and that distinction matters.

What can be included in Chapter 13 bankruptcy?

The short answer is that many common personal debts can be included in a Chapter 13 repayment plan or otherwise addressed through the case. That includes mortgage arrears, car loan arrears, credit card balances, medical bills, some tax debts, personal loans, certain judgment debts, and overdue domestic support in some situations. In some cases, Chapter 13 can also help with debts tied to a small business if you are personally liable for them.

What gets included, though, depends on the type of debt, whether it is secured or unsecured, whether it is a priority debt under bankruptcy law, and whether you want to keep the property connected to that debt. Those categories shape how much must be paid and over what time period.

Secured debts that can be included in Chapter 13

Secured debts are tied to collateral, such as a house or a vehicle. These are often the debts people are most worried about because missed payments can lead to foreclosure or repossession.

If you are behind on your mortgage, the past-due amount can usually be included in your Chapter 13 plan. That means you may be able to spread the arrears out over the life of the plan while resuming your regular monthly mortgage payment going forward. For many families, this is the feature that makes Chapter 13 worth considering. It can stop a foreclosure and create a structured way to catch up.

Car loan arrears can also be included. If your vehicle is at risk and you need it to get to work, school, or medical appointments, Chapter 13 may allow you to bring those missed payments into the plan and keep the car, as long as the broader numbers work.

In some cases, a car loan may even be adjusted through the bankruptcy process. Depending on how long ago the vehicle was purchased and other case-specific facts, you may be able to reduce the secured portion of the claim to the car’s value and pay that amount through the plan. This does not apply in every case, but it is one reason a careful review matters.

Other secured debts, such as furniture loans, tax liens, or loans secured by other personal property, may also be included. The key question is not just whether the debt exists, but what property secures it and whether keeping that property is part of your financial strategy.

Unsecured debts included in Chapter 13 bankruptcy

Unsecured debts are often the balances that have become impossible to manage month after month. They are not backed by collateral, which means creditors cannot simply take property when you miss a payment. They can, however, sue, obtain judgments, and pursue garnishments or levies.

Credit cards and medical bills

Credit card debt and medical debt are among the most common unsecured debts included in Chapter 13 bankruptcy. These debts are often paid only in part through the plan, and in many cases the unpaid balance may be discharged at the end of a successful case.

This is where Chapter 13 can create real breathing room. Instead of juggling minimum payments across multiple accounts, you pay into one structured plan based on your income, expenses, assets, and legal requirements.

Personal loans, old utility bills, and deficiency balances

Personal loans from banks, finance companies, and in some cases even family obligations documented as debts may be included. Old utility balances can often be addressed as well. If a car was repossessed or a home was foreclosed and you were left with a deficiency balance, that debt may also be treated as unsecured in many situations.

Lawsuit judgments

Many judgment debts can be included too. If a creditor already sued you and won, Chapter 13 may still stop collection activity and deal with the debt through the plan. But there is an important caution here: not every judgment is dischargeable. If the judgment arose from fraud, willful injury, or certain other conduct, special rules may apply.

Priority debts that usually must be paid

Some debts get special treatment under bankruptcy law. These are called priority debts, and they typically must be paid in full through the Chapter 13 plan unless a creditor agrees otherwise or the law provides a different result.

Recent income tax debt is a common example. Certain taxes can be included in Chapter 13 and paid over time without the same immediate collection pressure you may be facing outside bankruptcy. This can be extremely helpful for people dealing with IRS or state tax collection. Older tax debt may be treated differently, and some tax obligations may be dischargeable depending on timing and compliance history. It depends on the tax year, when returns were filed, and whether the debt meets the legal rules.

Domestic support obligations, including child support and spousal support, are also treated seriously. Past-due amounts can be included in the plan for repayment, but these obligations are generally not discharged. If support debt is part of the problem, Chapter 13 may still help by creating structure and stopping other collection pressure, even though the support itself remains a priority.

What debts usually cannot be wiped out?

A lot can be included in a Chapter 13 case, but inclusion does not always mean elimination. Some debts may be paid through the plan and still survive if the law says they are nondischargeable.

Student loans are the best-known example. They can be included in the sense that they are listed in the case and may receive some payment through the plan, but they usually are not discharged at the end unless you file a separate action and prove undue hardship, which is difficult.

Recent taxes, domestic support obligations, and many debts based on fraud, embezzlement, or willful and malicious injury may also remain enforceable after the case if they are not fully paid. Fines, penalties, and some criminal restitution obligations also raise separate issues.

That is why the better question is often not just what can be included in Chapter 13 bankruptcy, but what result Chapter 13 can produce for each debt. Sometimes the benefit is discharge. Sometimes it is time. Sometimes it is protection for your home or paycheck while you regain control.

Can business-related debt be included?

Yes, in many cases. If you are a small business owner and personally guaranteed business debt, that personal liability can often be addressed in your Chapter 13 case. Credit cards used for the business, equipment financing you signed personally, merchant cash advance obligations, lease exposure, and vendor claims may all come into play.

The details matter because some business debts are secured, some are unsecured, and some may involve active litigation. If your finances and your business obligations are mixed together, Chapter 13 can sometimes provide a way to stabilize both, at least from the personal side.

What can be included in Chapter 13 bankruptcy depends on your goals

Two people can have the same debts and need very different Chapter 13 plans. One person may be trying to save a house. Another may be focused on stopping wage garnishment and paying back taxes over time. A third may need to protect a vehicle and deal with a pile of unsecured debt after a job loss or medical crisis.

That is why a good Chapter 13 strategy is not just about making a debt list. It is about deciding which assets matter most, which debts need immediate attention, what your monthly budget can actually support, and whether Chapter 13 is the right tool compared with Chapter 7 or another option.

At Janus Law, this is where attorney guidance makes a real difference. The law gives you a framework, but the plan has to fit your life.

If you are overwhelmed and trying to figure out whether Chapter 13 can cover the debts that are putting your home, car, income, or peace of mind at risk, the next step is not guessing. It is getting clear answers about your specific debts, your priorities, and what kind of recovery is realistically possible.