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Legal Helpers Tip: Also called a wage earner plan, Chapter 13 bankruptcy allows individuals who have consistent income to create a plan to repay all of their debts or a portion thereof. Usually the debtor will petition creditors to accept installments over a three to five year period. Throughout this time frame, creditors are forbidden from either starting or continuing any collection efforts. Depending on the debtor's income level, the bankruptcy code and rules determines the time period allowed for repayment. There are a number of advantages to selecting a Chapter 13 over a Chapter 7 liquidation. The most significant benefit is saving the debtor's house from foreclosure.