Unlike Chapter 7 bankruptcy, which is focused on debt forgiveness or discharge, Chapter 13 bankruptcy is a debt repayment proceeding where all of your debts are consolidated.
An individual who files Chapter 13 will file a Chapter 13 plan of reorganization, usually worked on with a lawyer ahead of time. That plan proposes how they will pay their debts out of their future disposable income over the next three to five years. If there is not enough income, some debts may be decreased or partially discharged.
If the plan is accepted, over the next three to five years the payments are made to a trustee appointed by the court and then the trustee disperses the money to the creditors.