Also called a “wage earner’s plan,” this type of bankruptcy allows debtors to develop a plan to repay their debts over three to five years. The idea is that, depending on your personal income, you’ll develop a process you can stick to and pay a certain amount towards your debts over an agreed amount of time.
This process can help stop foreclosure proceedings and roll back delinquent mortgage payments on a path towards you keeping your home. It also has other debt stipulations that can third parties involved with your debt, such as co-signers.
Chapter 13 is an opportunity to consolidate your debt, worth through a third party “trustee,” and develop a plan to be debt-free within a certain amount of time with no direct contact with your creditors.