Chapter 13 bankruptcy, known as the “wage earners” bankruptcy, is for persons who either don’t qualify for a Chapter 7, or have other goals they wish to accomplish, such as catching up on past-due mortgage or car payments without losing those assets. Chapter 13 is an amazingly flexible and powerful tool for people to restructure their debt without fearing that creditors will lien their homes or repossess their cars. In addition, depending on your income and assets, you may also pay only a percentage of your unsecured debt (such as medical or credit card bills), over time. These two generally-used personal bankruptcy chapters each offers its own advantages and disadvantages, and so it is best to discuss your unique situation and options available before making a decision as to which chapter is right for you.