A Chapter 13 bankruptcy refers to Chapter 13, Title 11 of the United States Code which gives individuals debt relief by reorganizing their financial affairs while under protection from creditors by the U.S. Courts.
The benefits of a Chapter 13 bankruptcy include:
Optimal repayment terms (i.e. 0% Interest on general unsecured debts);
A way to consolidate, restructure and reduce your debt;
The time and breathing room to improve your credit and reach your financial goals in an orderly fashion.