Certain people do not qualify for Chapter 7 bankruptcy. This might be due to a high household income or a previous bankruptcy filing that prevents you from receiving a new discharge in Chapter 7. For these people, there is still the option of filing Chapter 13 bankruptcy.
In Chapter 13 bankruptcy, you keep your property, but pay back all, or a portion of, your debts over a three to five-year period.
Because you end up paying a portion of your debts over time in Chapter 13 bankruptcy, it is also called "reorganization bankruptcy" or "a wage earner plan".
This type of bankruptcy can also allow you to save your home if you have fallen behind on your payments.