A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.

If the debtor's current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause." If the debtor's current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. During this time the law forbids creditors from starting or continuing collection efforts.

In Delaware, as in other states, Chapter 13 bankruptcy is designed for individuals with a regular income who can pay back their debts through a structured repayment plan. The duration of the repayment plan under Chapter 13 depends on the debtor's monthly income relative to the state's median income. If the debtor earns less than the median income for Delaware, the repayment plan can be set for three years, although it can be extended if the court finds just cause. Conversely, if the debtor earns more than the median income, the repayment plan is typically set for five years. The law strictly prohibits any repayment plan from extending beyond five years. During the repayment period, creditors are legally barred from pursuing collection actions, which provides debtors with protection while they work towards resolving their debts.