This is also known as a reorganization bankruptcy. Chapter 13 is designed to have the debtor pay off the debt they have accrued while offering protection from further interest charges and fees. Typically filers pay for a three to five year period and whatever debt is left over is generally erased. An advantage of Chapter 13 is that it allows you to keep your non-exempt property; however, steady income is needed to not only cover general expenses, but put money towards paying down the debt. A person can file Chapter 13 if they live in or have a place of business in the United States, have a steady income and on the date they file the bankruptcy petition owe less than $307,675 in unsecured debts and less than $922,975 in secured debts. These amounts are 2001 amounts and are adjusted each year. Chapter 13 is not an option for corporations and partnerships, and you cannot file a Chapter 13 if a prior petition you filed was dismissed in the last 180 days.