Chapter 13 Bankruptcy allows you to restructure your debt. In short, you pledge to make monthly payments for the next 3 to 5 years out of your future wages, or some other verifiable income.
I have found the main reason people go into a Chapter 13 bankruptcy is to save there house, or in some situations they may have to much equity in their home. Also, under the new bankruptcy law 2005, if a person’s income exceeds a certain level, they are required to file a Chapter 13.
The main problem with a Chapter 13 bankruptcy – there is a low successful completion rate of approximately 25% to 32%.
Therefore, while a Chapter 13 may appear to be an option, it is not a quick fix, it going to require hard work and effort to complete a Chapter 13.