Chapter 13 is commonly called wage earner bankruptcy.
The name is misleading because anyone with regular income from some source may take advantage of the chapter. There are financial limitations for eligibility that, if exceeded, will result in the debtor being forced to file Chapter 11 instead of Chapter 13.
The debtor proposes a plan for the repayment of debts, with payments stretching over three to five years. The plan can provide for the payment of past due mortgage payments over that time period, but current payments must be made currently.
At the end of the time period, if all agreements under the plan have been met and if the debtor completes all required financial education, he or she receives a discharge.