Stop foreclosures, get some time to pay arrears
Chapter 13 Bankruptcy stops repossessions and foreclosures, and so long as can fund a reasonable Plan and stay current with your mortgage payments, you keep your property. A 13 filing affords debtors the protections of the bankruptcy code while the debtor reorganizes and makes orderly payments toward your debts.
If your income exceeds certain limits such that you are barred from filing a Chapter 7 Bankruptcy; or, you can pay your debts, you just need time to do so; or if you are filing bankruptcy to stop a foreclosure; or to avoid a car repossession, a filing under Chapter 13 of the bankruptcy code may be best for you. A Chapter 13 filing generally stops a foreclosure, provided it is filed before the sale date.
Become debt free
Filing under Chapter 13 means that you are going to make monthly payments (called a “Plan”) toward your debts over the next three to five years. For high income earners, this provides a way to actually pay off your credit card debt without high interest, late fees, or over limit fees, while retaining all of your property. At the end of that process, you should be debt free except for mortgages and student loans.