I would say Chapter 13 is arguably the least sensible debt relief option that is available for consumers. For one- it is very similar to a debt management plan in the fact that it is ultimately a payment plan, over 5 years typically, in which the debtor makes monthly installment payments until the debt (most often) is paid back in full. Except, I believe with Chapter 13 a court appointed trustee disperses the payment to each of the person's creditors and takes some of that payment for a fee. Wow, what relief! Considering the fact that Chapter 13 is far worse to have on your credit report, why not just go with a credit counseling company instead?

The only upside to Chapter 13, is that the courts decide how the repayment is going to go and NOT the creditors. So in many cases the creditors just have to "deal with it".

Still there are far too many downsides to a Chapter 13 that it's much better to try another route.