When facing financial challenges, people have a variety of debt relief options. Some of these options might be a "quick fix" while other may require some significant work. When people are considering Chapter 13 bankruptcy, in particular, they are often looking to solve significant financial issues. They may want to keep their home, car or other expensive good, while relieving some debt.
In order to do this, Chapter 13 bankruptcy requires that people have some sort of income. Then, part of this income is used to pay down the debt over a period of three or five years. Before the bankruptcy, people will be given the opportunity to create a repayment plan for these debts. This plan must meet certain legal requirements in order to be accepted by the court. For example, a person's surplus income must be used to pay creditors during the repayment period.