The premise of the Chapter 13 bankruptcy is that it provides the debtor an interest-free debt repayment plan. Through this payment plan, the bankruptcy client consolidates his or her debts and pays it off over a 3 to 5 year period.   Per a Federal Court order, within the structure of this plan, creditors must abide by the guidelines and cannot attempt to collect from you.  The key element here is that to file Chapter 13 bankruptcy to repay your debts over this period of time, you are required to have a steady source of income or be employed in order for the Bankruptcy Court to approve your payment plan.  

Aspects to consider when looking at filing a Chapter 13 is whether or not this income covers your living expenses, a repayment plan and the court fees involved to consolidate your debts which may include credit card debt, car or student loans, mortgage payments that were not met, and additional unsecured debt (monies loaned without benefit of a secured asset, such as a home).  Another key element is that all of the debtor’s outstanding debts must be included in the Chapter 13 bankruptcy consolidation.