Chapter 13 Bankruptcy is a 3-5 year payment plan to re-pay a percentage of your debts and receive a discharge. This percentage can range from 1% to 100% depending on your individual circumstances. At the completion of your plan you will receive your discharge, this is the legal determination that your unsecured debt balances that remain after the plan are wiped away and cannot be collected on, giving you a clean slate.
If you are behind on your home or vehicle Chapter 13 can stop foreclosure or repossession.
The Chapter 13 office can also resume your regular house payments, upon completion of the case the Bankruptcy Court will issue a statement that the payments are current. This means the lender cannot come back and say there are additional attorney fees or other charges.
Sometimes it is possible to strip a second mortgage from your home. This means that if you have a second mortgage there is a possiblity that it could be turned into an unsecured debt and the lender would have to release their lien on your property upon receipt of discharge.
Chapter 13 can help you get back on your feet and keep all of your assets.