Relief under Chapter 13 is available to consumers (debtors) who are not qualified to file Chapter 7 bankruptcy for any reason. Most common reasons are, income above the median income and real or personal property of debtor.

In Case of Chapter 13, a Plan is developed to pay the creditors a certain percentage of debtor’s disposable income. Disposable income is the money which is left after paying off all of debtor’s necessary living expenses. The Plan is usually three or five years long. After the successful completion of the Plan, debtor’s remaining debt is discharged.