Chapter 13 Bankruptcy is important for individuals who cannnot qualify to file a Chapter 7 bankruptcy. A Chapter 13 is a reorganization of your debt. You will pay a monthly plan payment to your Trustee under your Chapter 13 Plan.
The following items are included within your plan:
1) Car Payments
2) Back Payments on Mortgage (if you decide to keep your home)
4) Child Support Arrearages (if you have any)
5) A percentage of plan payments go to your unsecured creditors (i.e. credit cards/medical bills)
There are options under a Chapter 13 that are not available under a Chapter 7. For example, you can lien strip (get rid of) a second mortgage on your primary residence. You can also cram down your investment property to its current market value.