Chapter 13 consolidates your bills and allows you to make payments over three to five years. The time and amount depends on the specific case. Interest is only paid on secured accounts and you only pay your unsecured creditor - credit cards, medical bills - based upon what you can afford to pay and within court set guidelines. The difference between this and a credit counseling company is that the creditors have to accept the proposed plan if it falls within the court's guidelines.
Chapter 13 bankruptcies can stop foreclosures, repossessions, garnishments, and tax penalties and can also work to recoup repossessed vehicles if filed within a certain time period after the repossession. At the end of the five years, any debt that isn't paid off is discharged or wiped out, with certain exceptions - taxes, student loans, child support, maintenance.