Chapter 13 bankruptcy is designed for individuals, primarily to prevent foreclosure on their homes. It allows the individual to reorganize their debts into a regular payment schedule without fear of repossession, seizure, or fines for failure to pay taxes. It's designed for individuals with regular income; those who don't may select chapter 7 bankruptcy instead.
Only an individual with regular income that owes, on the date of the filing of the petition, noncontingent, liquidated, unsecured debts of less than $250,000 and noncontingent, liquidated, secured debts of less than $750,000, or an individual with regular income and such individual's spouse, except a stockbroker or a commodity broker, that owe, on the date of the filing of the petition, noncontingent, liquidated, unsecured debts that aggregate less than $250,000 and noncontingent, liquidated, secured debts of less than $750,000 may be a debtor under chapter 13 of this title.
-- United States Code, Chapter 1, Sec. 109