Chapter 13, sometimes referred to as a “wage earner” plan because you must be earning an income or receiving some other form of regular income such as Social Security in order to participate, involves restructuring and a 3-5 year debt repayment plan. In a chapter 13 bankruptcy, rather than canceling your debts altogether, you are paying back your creditors at least a portion of what they are owed. In most cases, unsecured debt is paid off at a percentage on the dollar, frequently 70%, with no further interest. On secured debts, arrearages can be cured and the interest rate is sometimes altered. At the end of the plan, whatever unsecured debts you have remaining may be discharged. A chapter 13 plan is ideal for people who have assets such as home equity, and whose debt is mostly secured, such as mortgaged homes and financed cars, because chapter 13 allows you to consolidate your debt, cure arrearages, and keep your property.