A chapter 13 bankruptcy, unlike a chapter 7, is not a "liquidation" bankruptcy and therefore the debtor does not lose any assets. In some cases the debtor need only pay back a small percentage of his or her debt
if the plan is proposed in good faith. Another reason to file a chapter 13 bankruptcy is to "cram down" a second mortgage on a house. If your house worth less than what you owe on the first mortgage the second mortgage is considered unsecured and therefore can be listed along with the unsecured debt. The debtor would only have to pay back a percentage of the second mortgage, along with a percent of the other unsecured debt. At the end of the chapter 13 bankruptcy the second mortgage would be wiped out and the debtor would only owe what remains on the first mortgage.