It is the chapter of the Bankruptcy Code that provides for the adjustment of debts of an individual with regular income, often referred to as a “wage-earner” plan. Chapter 13 allows a debtor to keep property and use his or her disposable income to pay debts over time, usually three to five years.

For further information read the following:

https://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx