In chapter 13 bankruptcy, another common form of bankruptcy is also known as a “wage earner plan”. Chapter 13 allows an individual with regular income to develop a plan to pay back parts, or all, of their debts. One advantage of chapter 13 is it allows individuals to avoid foreclosure on their houses, in contrast to chapter 7 although there are mortgage restructuring amenmdents that may be available in conjunction with a Chapter 7. Another advantage of Chapter 13 is that it may still protect wages throughout the course of the bankruptcy.