What is Chapter 13? Chapter 13 addresses situations where assets are subject to protection, or, where income is higher and the Chapter 7 is not permitted. Additionally, and may just as importantly, Chapter 13 is used frequently to stop mortgage foreclosures and can save your home. Saving your home can be even at the last moment. Chapter 13 designed for wages earners or small businesses owners. When a case is filed, then debt collection activities are, including wage attachments, mortgage foreclosures, lawsuits, telephone calls, letters, bank setoffs or any kind of collections activity at stopped by what is called and Automatic Stay.   The Debtor’s attorney proposes a "plan" of repayment. The plan may, in most circumstances, propose payments in an amount less than your debts. Many, who earn less than the median income for their states, pay much less than all of their unsecured debts, and some pay none of those debts.  Whether or not this is the proper type of filing for the Debtor, as opposed to a Chapter 7 or a Chapter 11 filing, depends upon a “means test” and the level of assets that one had prior to the filing of the bankruptcy protection; respectively. For Chapter 13, the purpose of the means test is twofold. The first is to determine the length of time the Debtor must be pay into a Chapter 13 plan and the minimum amount the Debtor must repay unsecured creditors.  After a "confirmation hearing," the court approves your plan, and it becomes binding upon you and the creditors. After you complete payments under the plan, the court cancels the balance of your unsecured debt. All debts are not treated the same. Mortgage obligations, various other long term debts, alimony or child support, many taxes, debts for most government funded or guaranteed educational loans or benefit overpayments, debts arising from death or personal injury caused by driving while intoxicated or under the influence of drugs, and debts for restitution or a criminal fine included in a sentence on the debtor's conviction of a crime) are not cancelled.