Chapter 13, also called the wage earner's plan, repays debt over a three or five year period. It consolidates all payments into one monthly amount that the debtor sends to the trustee. The trustee determines creditor repayment, and in the case of unsecured debt, may reduce or require no payment.
Advantages of filing a Chapter 13 bankruptcy over a Chapter 7 include allowing debtors to keep assets that would liquidate under Chapter 7. You do not have to liquidate valuable items like second cars, vacation homes, heirlooms, collectibles, and investments under Chapter 13.