A Chapter 13 Bankruptcy generally lasts from 3 to 5 years.
If you pay back all of your debt with interest though, it may end early. How long a Chapter 13 Bankruptcy must last depends on whether you are an over median or under median debtor.
What this means is based on figures determined by the Bankruptcy law, do you make more or less than the average individual or family of the same size? If you make more, you are over median. If you are over median debtor, most bankruptcy courts require that you make payments for 5 years even if your payment is not high enough to pay any unsecured debt. This is because your income may increase, or you may come into a windfall during the 5 year period, resulting in some payment to unsecured creditors.
Even if you are an under median bankruptcy debtor, and only required to be in a 3 year plan, many people prefer to extend the period to 5 years to lower the payment. For example, if you using a Chapter 13 Bankruptcy plan to catch up on past-due mortgage payments of $10,000, you can pay this back over 3 years at an average payment of $277.77 per month or 5 years at $166.00 per month.
Often when people use a Chapter 13 Bankruptcy to reorganize their debts, they have depleted all of their savings, and need the cash flow relief that a longer period can provide. Deciding what is best for your situation is something your bankruptcy lawyer can help you with by discussing payment amounts and what you can afford.