What is a Chapter 13 bankruptcy plan?

A Chapter 13 bankruptcy plan is an interest-free debt repayment plan through which you consolidate your debts, usually making a biweekly or monthly payment on your debt over a 3- to 5-year period. Debts that are often consolidated in a Chapter 13 bankruptcy include mortgage arrears and balances on car loans, student loans, credit card debts and other unsecured debts. All outstanding debt must be included in the Chapter 13 bankruptcy.