Chapter 13 bankruptcy does not mean you have to repay all of your debts. In fact, a very small number of chapter 13 plans provide for repayment of 100% of the debt. Chapter 13 bankruptcy is used by people who make too much money to qualify for the chapter 7 bankruptcy means test, or by people who are too far behind in payments on their home or car and want to keep the home or car. Chapter 13 bankruptcy provides for repayment of the back payments through the court. This is especially useful in cases where the mortgage company or bank will no longer work with debtors on payments or payment plans. If this happens, the court will tell the creditor in chapter 13 bankruptcy what the repayment plan will be. There is no application or bargaining. The court will dictate the repayment over three to five years.