The Chapter 13 plan is a 3 to 5 year plan to pay off and retain items you want to keep (home, car, etc…) and be debt free. Debts that are generally consolidated in a Chapter 13 bankruptcy are mortgage arrears, balances on vehicle loans, IRS debt, student loans. Most of the unsecured debt like credit cards, medical bills and personal loans usually receive a minimal payout and with the balance discharged. You can now “strip” 2nd mortgages or equity lines from your home. IRS Debt can be paid over time without penalties and interest and sometimes eliminated altogether as unsecured debt.