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bankruptcy module for chapter 13 reorganization chapter 13 overview a chapter 13 bankruptcy is an individual reorganization for people who have enough disposable income to pay both their bills and their debts and who own property that they want to protect but who need a break to get back to solvency it gives these people time to pay their debts while they live their lives uninterrupted by creditors and it also gives the debtors potential discounts to their debts while assuring that their creditors receive at least some repayments generally more than they would receive under a chapter 7 chapter 13 actions are for individuals only although they can include individual business debts these bankruptcies are mostly filed by middle income people who want to keep their secured property like houses and cars pay off their unsecured debts and keep their credit cards but who need restructuring of their debts chapter xiii czar also frequently filed by homeowners looking to stave off mortgage forecl