Chapter 13 bankruptcy is an alternative to Chapter 7 and also differs greatly. Chapter 13 is considered a debt repayment plan that usually last about 5 years. Repayment plans can vary from 0%-100% repayment of unsecured debts. This is carefully calculated through a court formula using gross income. These plans can be very tricky to craft and it is always best to make sure you have an attorney that can set your plan up for success.
Unlike a Chapter 7 bankruptcy, a Chapter 13 repayment plan avoids liquidation of any property. It also allows people to catch up on any arrears they might have with their mortgage or car loan. This prevents foreclosure and repossession from happening. While it does require a repayment plan rather than general discharge, a Chapter 13 repayment plan allows people to walk away 5 years down the road completely debt free.
Here is a general overview and time line of the process: