Chapter 13 is often referred to as a “wage earner” plan because you must be earning an income to participate in a chapter 13 plan.  In a chapter 13 bankruptcy, rather than canceling your debts, you will receive additional time to pay off your debts.  In most cases, your debts can be paid off during the established time at a substantially lower interest rate.  At the end of the plan, whatever debts you have remaining may be cancelled.  A chapter 13 plan is ideal for people whose debt is mostly secured, such as mortgaged homes and financed cars, because chapter 13 allows you to keep your property while making planned payments.