Chapter 13 bankruptcies are commonly referred to as wage-earner repayment plans. Chapter 13 bankruptcy involves a reorganization of an individual's financial affairs. The debts are consolidated and a plan for creditor repayment is established. The federal bankruptcy court appoints a trustee who administers the case. A Chapter 13 bankruptcy stops foreclosures, repossessions, wage garnishments, tax levies, and IRS seizures. The trustee monitors a court-enforced repayment plan to restructure secured and unsecured debts, including mortgage arrearages on their home, automobile payments, co-signed debts, tax issues, back child support and student loans, generally over a period of time. This action helps to reduce monthly payments to an affordable amount, and allows the person to keep their property. For more in-depth information about wage-earner repayment plans, consult a bankruptcy attorney.