New Hampshire’s $120,000 homestead exemption sets a relatively low liquidation test floor for most Chapter 13 filers — high enough to fully cover the equity most homeowners have built, which keeps plan payments focused on actual disposable income rather than unprotected assets. Combined with a genuine choice between state and federal exemptions, New Hampshire gives filers more room to structure a manageable plan than most neighboring states.
How Chapter 13 Works in New Hampshire
You file a petition and propose a repayment plan lasting three to five years. A standing Chapter 13 trustee collects your monthly payment and distributes it — secured debts first, then priority claims, then whatever’s left goes to unsecured creditors. You keep all your property throughout, and remaining qualifying unsecured debt is discharged when the plan completes.
The exemptions you claim set your plan’s liquidation test floor — the minimum unsecured creditors must receive, equal to what they’d get in a hypothetical Chapter 7.
Should You Use New Hampshire or Federal Exemptions in Chapter 13?
New Hampshire lets filers choose between its own exemptions and the federal exemptions, whichever protects more property - you can't combine the two systems. New Hampshire’s homestead exemption protects $120,000 in home equity, or $240,000 combined for married couples who own the home together and file jointly. Homeowners generally do better under the state’s own homestead exemption. Renters or filers with less home equity should compare both systems given how directly this choice affects the plan’s cost.
Why New Hampshire Filers End Up in Chapter 13
Mortgage arrears are the most common driver, especially valuable given the significant home equity many New Hampshire homeowners have built over recent years. Income above the means test threshold is the second major factor — New Hampshire’s median income figures run well above the national average, which pushes more higher-earning households into Chapter 13 rather than qualifying for Chapter 7 outright.
Do You Qualify for Chapter 7 Instead? The Means Test
New Hampshire’s current median income figures:
- 1 person: $87,287
- 2 people: $109,324
- 3 people: $141,531
- 4 people: $155,203
- Each additional person: add $11,100
Filers above the median for their household size generally must commit to a five-year plan; those below can propose three years.
Mortgage Cure in New Hampshire
Filing Chapter 13 triggers the automatic stay, halting foreclosure immediately. The plan spreads mortgage arrears across its three-to-five-year duration while you resume regular payments going forward — protecting equity that, given New Hampshire’s home values, is often substantial.
Vehicle Treatment and Cramdown
New Hampshire exempts $10,000 in equity in one motor vehicle. If your car loan was originated far enough before filing and the vehicle is worth less than the remaining balance, the plan can cram the loan down to the vehicle’s current market value at a court-approved interest rate.
Which Federal District Do You File In?
District of New Hampshire - a single statewide district based in Concord, serving the entire state.How Much Does a Chapter 13 Attorney Cost in New Hampshire?
Chapter 13 attorney fees in New Hampshire typically run $3,500 to $4,500, on top of the 313 federal filing fee. Most of the fee is built into the plan itself rather than paid upfront.
Common Mistakes New Hampshire Filers Make
Not comparing state versus federal exemptions before filing. Skipping the comparison can mean a higher plan payment than necessary.
Underestimating New Hampshire’s high median income threshold. Filers with steady, above-average income sometimes assume they’ll qualify for Chapter 7 and are surprised to land in Chapter 13.
Missing required tax filings during the plan, which can trigger a motion to dismiss.
Overlooking a non-filing spouse’s income in the means test.
A Realistic Example
Consider a filer we’ll call Denise, living in Manchester. She works in healthcare administration and fell behind on her mortgage after a period of reduced hours. She owns a home with about $140,000 in equity and drives a car worth $8,000.
New Hampshire’s $120,000 homestead exemption doesn’t fully cover her $140,000 in equity — a $20,000 gap her attorney factors into the plan’s liquidation test floor. Her vehicle equity, once the $10,000 exemption applies, adds little to the calculation.
Her income lands above New Hampshire’s median for a household of two, so she commits to a five-year plan. The mortgage arrears are spread across the plan while she resumes regular payments. Five years later, the mortgage is current and the remaining unsecured debt is discharged.
Frequently Asked Questions About Chapter 13 Bankruptcy in New Hampshire
Can Chapter 13 stop foreclosure in New Hampshire?
Yes. Filing triggers the automatic stay, which halts foreclosure immediately. Your plan then spreads the mortgage arrears across three to five years while you resume regular payments.
Should I use New Hampshire or federal exemptions in Chapter 13?
It depends on what you own. Homeowners generally do better under New Hampshire’s own $120,000 homestead exemption. Renters or filers with less equity should compare both systems, since the choice directly affects the plan’s liquidation test floor.
How long does a Chapter 13 plan last in New Hampshire?
Three to five years. Filers with household income above New Hampshire’s median for their household size generally must propose a five-year plan; those below can propose three years.
Can I keep my car in a New Hampshire Chapter 13?
Yes — Chapter 13 doesn’t require giving up property. If your car loan is old enough and the vehicle is worth less than the loan balance, the plan may also cram down the loan to the vehicle’s current value.
What is the New Hampshire bankruptcy means test income limit?
It depends on household size and updates periodically. Current thresholds are roughly $87,287 for one person, $109,324 for two, $141,531 for three, and $155,203 for four — notably higher than the national average.
Which bankruptcy court handles my case in New Hampshire?
New Hampshire has a single statewide bankruptcy court, the District of New Hampshire, based in Concord.
Where to Verify the Details
New Hampshire’s exemption statutes are published in RSA 511:2 and RSA 480:1. For current means test figures, check the U.S. Trustee Program website. Filing information is available through the District of New Hampshire bankruptcy court.
Alternatives to Chapter 13 in New Hampshire
If you pass the means test and don’t need to cure a mortgage, our Chapter 7 guide for New Hampshire explains how straight liquidation might discharge your debt faster. For a state with a similarly flat homestead structure, see our Chapter 13 guide for West Virginia.
Last reviewed by American Debt Guide Editorial Team. Figures on this page reflect New Hampshire bankruptcy exemption amounts and federal filing data as of July 2026.