How Your Firm Can Prepare and File Chapter 13’s on the Cloud
Use NextChapter's cloud-based software for Chapter 13 bankruptcies!
  • Chapter 7
  • bankruptcy
Blog Specialist
Published on Sep 15, 2023

Chapter 13 bankruptcy is the most recommended option for individuals experiencing financial difficulties but earning enough income to pay some of their debts. Any wage earner can enforce their Chapter 13 rights, including self-employed individuals. However, this type of bankruptcy is not available to corporations and partnerships. Other names for Chapter 13 bankruptcy are "wage earner's bankruptcy" or "repayment plan bankruptcy." 

Of all the types of bankruptcies available to Americans, Chapters 7 and 13 are the most sought after since they're available to a wide range of individuals. As such, forward-looking legal professionals and law firms should have viable tools, such as reliable cloud-based software, to ensure excellent delivery of bankruptcy services.

Furthermore, filing for Chapter 13 is a long process (usually three to five years), and cloud-based software provides the accessibility, confidentiality, and storage capacity needed to guarantee clients seamless repayment plans. 

Ultra-modern legal software, NextChapter offers an all-in-one cloud computing platform that simplifies bankruptcy filing. This post is a detailed guide on how to file for Chapter 13 bankruptcy using NextChapter. Without further ado, let's get into it!

How Does Chapter 13 Bankruptcy Work?

One of the core differences between Chapters 7 and 13 bankruptcies is that the latter does not rule out debt. Instead, Chapter 13 provides a framework for developing a feasible repayment plan with which the debtor can pay off most of his debt.

Usually, the first step in Chapter 13 bankruptcy is to alleviate any pressure on the debtor by his creditor. This means collectors must discontinue all threats to sue or claim collateral. After this petition has been filed, the debtor can begin to work with his lawyer to develop a viable repayment plan.

Under Chapter 13 bankruptcy, debts are cataloged into three, viz: "priority," "secured," and "unsecured." Priority debts, such as tax debts, must be paid in full, while for secured debts, the amount of collateral used in securing them must be repaid, at the very least. Most unsecured debts are not paid in full or at all.

Chapter 13 repayment calculations can get tricky as a successful plan must be adapted to the debtor's particular circumstance, monthly income, and family size. This is where the need for an efficient Chapter 13 bankruptcy calculator arises. Fortunately, NextChapter has integrated a full-proof Chapter 13 Plan Package, which we will review in the following paragraphs.

NextChapter’s Chapter 13 Plan Package

NextChapter's Chapter 13 Package Plan provides a complete set of tools to ensure legal professionals and firms prepare and process Chapter 13 cases accurately and efficiently.

The package comprises a real-time calculator customized for your specific district, a plan editor, a time tracker, and client receipt printouts. When used together, the Chapter 13 Plan package proves a modernized replacement for messy spreadsheets and other manual bankruptcy filing processes.

Chapter 13 Calculator

Instead of subjecting legal professionals to old-fashioned software calculators, NextChapter has designed an in-app calculator, adapted to simplify the repayment plan as provided by Chapter 13. 

To begin with, the calculator is sleek and intuitive, so even lawyers with basic knowledge of technology can easily use the tool. The Chapter 13 calculator allows users to update plan length and treatment easily, and the tool automatically recalculates the figures when these changes are made. 

Additionally, the tool displays the claims and terms of each client's repayment plan in a comprehensive and personalized format. The calculator also presents the schedule J side by side with the total plan payment to save users the hassle of alternating between screens and allow for easy comparisons. 

Chapter 13 Plan Editor

After entering claims and preferred plan treatments, the next step is to launch the Chapter 13 Plan Editor to start a plan. Since the Chapter 13 Calculator and Plan Editor are within the same software, there's no need to re-enter or export data from one tool to the other. NextChapter's Chapter 13 Plan Editor automatically fills in any sections of your plan based on the information provided in that case.

The Plan Editor tool allows for seamless preparation of repayment plans from start to finish. It is also highly flexible, so users can make changes to their plans, save progress at any point, create multiple versions for amended plans, and export plans as many times as needed.

Chapter 13 Plan Tracker

NextChapter has installed a time-tracking tool to track how much time users spend working on each Chapter 13 case. The tracker uses an easy-to-read timetable to record the time spent on each case. Time tracking automatically begins when you start working on a case, and the total hours worked are provided at the bottom timer.

This component of NextChapter's Chapter 13 Plan Package aims to help users manage their billable hours and business operations better.

Chapter 13 Receipt Printouts

To ensure transparency and establish trust between you and your clients, NextChapter has a "Receipt Printout" feature. This tool allows you to generate receipts that break down all claims and treatments in a simple and easy-to-read PDF.

Once you've calculated Chapter 13 plan payments, you can send your client a copy of the receipt. This helps them understand their Chapter 13 plan even more and allows them to ask questions on any aspects of the plan that are not clear enough.


In addition to the functions mentioned above, legal establishments can benefit from the all-in-one nature of the Chapter 13 Plan Package. For instance, when working across the four tools in the package, data re-entry will be unnecessary as information is automatically transferred when needed.

NextChapter's Chapter 13 Plan Package is bankruptcy filing made easy, not to mention that the software is user-friendly and has little to no room for error. Scale your bankruptcy filing process by subscribing to the Chapter 13 Plan Package. See this post for guidance on how to file for Chapter 13 using NextChapter's Chapter 13 Package.