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 Maryland, Chapter 13 bankruptcy, often referred to as a wage earner's plan, allows individuals with a steady income to create a repayment strategy for their debts. Debtors can propose a repayment plan that spans three to five years, depending on their monthly income relative to the state's median income. If the debtor earns less than the median income for Maryland, the repayment plan can be set for three years, but it may be extended if the court finds justifiable reasons. Conversely, if the debtor earns more than the median income, the repayment plan is typically set for five years. Legally, the repayment period cannot exceed five years. Throughout the duration of the Chapter 13 plan, creditors are legally prohibited from initiating or continuing any debt collection actions against the debtor.