Chapter 13 bankruptcy is a legal process established under US law which consolidates and reorganizes debts of individuals and businesses through a repayment plan over a three to five year period. It allows debtors to pay off their debt with realistic, manageable payment plans and protect their property from foreclosure or repossession.

Chapter 13 is often referred to as a wage earner's bankruptcy because it allows an individual to keep their home, car, and other assets while continuing to pay their debts over time. It is an attractive option for those who are unable to qualify for Chapter 7, including those with assets above the bankruptcy exemptions and debtors with a steady income.

It is important to note that debtors may not qualify for Chapter 13 bankruptcy if their mortgage is delinquent and their debt is primarily consumer debt (non-essential purchase, medical bills or student loan debt). Additionally, the court must approve a repayment plan and the debtor must adhere to the plan in order for it to be successful.

The key benefit to filing for Chapter 13 bankruptcy is that it allows the debtor to reorganize their debt into one payment with an interest rate lower than the original rate. Additionally, debtors may be able to "strip" a second mortgage or home equity loan in some cases.

One drawback to filing Chapter 13 is that it will remain on the debtor's credit report for seven years, compared to Chapter 7 bankruptcy which is reported for only four years. Additionally, debtors may have to liquidate assets in order to make payments on the plan, and their monthly payments are based on the total amount of their debt and the amount of disposable income they have available.

Overall, Chapter 13 bankruptcy offers relief to those with unmanageable debt who wish to keep their assets. This option should be explored carefully and only with the help of a qualified attorney to ensure the utmost protection and proper guidance.