Chapter 13 bankruptcy is a repayment plan based upon a family’s disposable income after they have taken care of their most basic living expenses. Chapter 13 is usually extend over a period of somewhere between 36 and 60 months. A Chapter 13 proceeding allows certain debts to be discharged, or forgiven, that would not of been discharged in a Chapter 7 proceeding. It also allows for arrearages on homes and cars to be cured over an extended period of time throughout the life of the Chapter 13 Proceeding. Chapter 13 Bankruptcy allows debtors a breathing space financially, where they can reorganize their finances, and move forward with the knowledge that they will be able to utilize current income to address present household expenses and needs.