Chapter 7 is know as straight bankruptcy and Chapter 13 is known as bill reorganization or bill consolidation. Chapter 13 is an option if you fall behind and you feel like you are slowly sinking deeper into debt. Chapter 13 is an excellent opportunity for you to reorganize all of your bills into one low monthly payment. Now I’m not talking about a loan. I’m telling you a law which requires your creditors to take less money monthly over a longer period of time. It is a powerful law because it carries the weight of the U.S. Federal Government behind it. It is powerful. And because it is the Federal Government, large corporations, banks, finance companies, credit card companies, skip tracers, repo men, and collectors all realize that under this form of debt reorganization, you have the protection of the Federal Government. You can even pay back your student loans over the next 3-5 years under the terms of your plan.