How is Chapter 13 different from Chapter 7?

Chapter 13 is often preferable to chapter 7 because it enables you to keep a valuable asset, such as a house. It is also favored because it allows you to create a “plan” to repay creditors over three to five years. Under chapter 13 you must make payments to creditors, through the court trustee, based on your anticipated income over the period specified in your debt repayment plan. You are protected from lawsuits, garnishments, and other creditor actions while the plan is in effect.