Chapter 13 is a bankruptcy procedure where the debtor undergoes a reorganization of their finances under the approval and supervision of the courts. A plan to repay outstanding credit in 3 to 5 years must be outlined and submitted. Chapter 13 bankruptcy differs from Chapter 7 and Chapter 11 bankruptcies. Essentially, this bankruptcy allows a debtor with a current sufficient income to submit a plan for debt pay-back One advantage could be preventing the foreclosure of a home.