A Chapter 13 Bankruptcy is when an individual may re-organize their debt and reduce all balances with interest down to pennies on the dollar. All re-organized and put into a one lump sum monthly payment over a 3-5 year plan set forth by the attorney according to the individual's income. The individual may retain all property in this type of bankruptcy.
Almost all debts are eligible including some IRS debts, however student loans are not eligible in any bankruptcy. The types of debts that are eligible are similar to a chapter 7 such as: