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 New Hampshire, Chapter 13 bankruptcy, often referred to as a wage earner's plan, allows individuals with a steady income to create a repayment plan for their debts. Debtors can propose a plan to pay back creditors in installments over a period of three to five years. If the debtor's monthly income is below the state median, the repayment plan will typically last for three years, unless the court finds a justifiable reason to extend it. Conversely, if the debtor's income exceeds the state median, the repayment plan is usually set for five years. Legally, the repayment period cannot exceed five years. During the repayment plan period, creditors are legally prohibited from initiating or continuing any debt collection actions against the debtor.