If you’re in a Chapter 13 bankruptcy and you found out you’re in a 100% repayment plan, you may be feeling frustrated, overwhelmed, or even trapped.
Many people ask:
“Can I get out of a 100% Chapter 13 plan?”
“Can my payment be lowered?”
“Why am I paying everyone back in full?”
“What if I can’t afford this anymore?”
These are very common questions — and the answer is:
Sometimes you can, but it depends on why you’re in a 100% plan in the first place.
Let’s break it down.
What Does a 100% Chapter 13 Plan Mean?
A 100% plan means your Chapter 13 repayment plan requires you to repay 100% of your unsecured creditors, such as:
- credit cards
- medical bills
- personal loans
- collections
This usually happens over a 3–5 year plan.
Why Are You in a 100% Plan?
Before you can get out of a 100% plan, you need to understand why you were placed in one.
Common reasons include:
1. Your Income Is High Enough
If the court believes you have enough disposable income to repay your creditors, you may be required to do so.
2. You Have Too Much Equity in Property
If you have non-exempt equity in a home, vehicle, or other assets, bankruptcy law may require creditors to receive at least what they would have received in Chapter 7.
3. You Filed a “Best Interest of Creditors” Plan
This rule requires unsecured creditors to receive at least as much as they would have gotten if a Chapter 7 trustee could have sold assets.
Can You Modify a 100% Plan?
Yes, in some cases.
If your income drops or expenses increase, you may be able to request a plan modification.
Examples include:
- job loss
- reduced hours
- illness or medical expenses
- increased rent or mortgage
- unexpected childcare costs
- loss of a spouse’s income
- disability or retirement
If your financial situation has changed significantly, your attorney may be able to file a motion to reduce your plan payment.
When You Usually Cannot Get Out of a 100% Plan
In some cases, you may not be able to reduce your plan below 100%, especially if the 100% requirement is based on equity.
For example:
If you have substantial equity in a home or other property
The law may require you to repay creditors in full regardless of income changes, because creditors must receive what they would have received in Chapter 7.
So even if your income drops slightly, the court may still require full repayment.
Can You Convert to Chapter 7 Instead?
Sometimes.
If you qualify for Chapter 7, conversion may be an option.
But it can be risky if:
- you have assets that could be taken in Chapter 7
- your income is too high to pass the means test
- you are behind on your mortgage and trying to keep your home
Conversion is not always available or advisable.
Can You Dismiss the Chapter 13 and Refile?
Some people consider dismissing their Chapter 13 case and filing again later.
However, this can be risky because:
- creditors can restart collection immediately
- foreclosure or repossession may resume
- the automatic stay may be limited in future cases
- you may lose the protection you currently have
This is not a decision to make without legal advice.
What If You Just Can’t Afford the Payment?
If your plan payment is truly unaffordable, you may have options such as:
- modifying the plan
- converting to Chapter 7
- seeking a hardship discharge (rare, but possible)
- negotiating certain claims
- changing the plan term (3 to 5 years)
Your attorney may be able to adjust the plan depending on your circumstances.
The Bottom Line
Can you get out of a 100% Chapter 13 plan?
✅ Sometimes.
But it depends on:
- whether your income has changed
- whether your expenses have increased
- whether your 100% plan is based on equity rules
- whether you qualify for conversion or modification
Final Thought
A 100% plan can feel discouraging, but it’s not always permanent.
If your situation has changed, you may have legal options to reduce payments or restructure your plan.
The most important thing is to address it early — before falling behind.
