Top Three Reasons to File Chapter 13: Stop Foreclosure: This type of bankruptcy will stay a home foreclosure and prevent a sheriff's sale. Specifically, the bankruptcy laws let you pay your mortgage arrears over a maximum period of 60 months allowing you to become current on your mortgage loan. In a sense, your repayment plan is a court ordered loan modification imposed on your mortgage lender. Pay Off Debt Faster: Even medium and high income earners may benefit. For example, during the debt repayment period your creditors cannot charge you interest and penalties. Your payment will go directly toward paying off principal (minus any administrative fees). This will allow you to pay off your debts much faster than on your own, or through a debt consolidation plan. Pay Less Than You Owe: In many cases, individuals are able to only pay pennies on the dollar on the amount that they owe to their creditors. This is because the amount individuals must pay into the Repayment Plan is based on their income minus expenses. In other words, a bankruptcy filer is only required to pay into the plan the amount calculated as their disposable income.