The bankruptcy objectives that Chapter 13 and Chapter 7 are usually able to accomplish include wiping out unsecured debts, stopping foreclosures, ending garnishments, putting a halt to repossessions, avoiding or reversing utility shut-offs, and blocking further debt collection phone calls, ultimatums, and threats.

Chapter 13 (and 7) provides exemptions that may allow filers to keep certain assets, but there are a lot of variables and it depends on individual circumstances. Unless you feel that your financial situation leaves you no other choice, declaring Chapter 13 bankruptcy (or Chapter 7) can and should be avoided if at all possible. While it’s true that Chapter 13 may give people who can’t satisfy their debts a “fresh start”, the repercussions of such a decision will keep resurfacing for years to come.