Chapter 13 has some really fabulous uses. I discuss the technicalities at “CHAPTER 13-BANKRUPTCY” Here I am just discussing it generally, and it may be best to start at the other page and then come back here. Chapter 13 is a personal reorganization that works very cost effectively for those who have unsecured debt of less than $336900 and secured debt of less than $1010000. See “LIABILITIES” for a discussion of the differences in this type of debt. Chapter 13 can save your home if youve fallen behind on mortgage payments. It can strip off a completely unsecured second mortgage. It can stop interest and penalties on otherwise nondischargeable tax debt.