Chapter 13 is a proceeding defined in the U.S. Bankruptcy Code meant to protect debtors from their creditors. Chapter 13 ensures that your unsecured creditors are paid as much as possible of what they are owed. In a chapter 13 bankruptcy all of your debts are combined into one managable monthly payment. Penalties and interest are typically removed so 100% of what is being paid to your unsecured creditors goes to the principal balance. A chapter 13 bankruptcy repayment plan is much more beneficial then simply continuing to pay your monthly minimum credit card payments. If you were to pay the minimum payment each month on your credit cards it would take approximately 25 or so years to pay in full, however, paying them through a Chapter 13 payment plan will take 5 years or less. That is so because a Chapter 13 payment plan can last no longer than 5 years and the majority of time your monthly plan payment is lower than the total of your minimum monthly credit card payments.