Who Should File Chapter 13?

Chapter 13 is usually for those people who have enough income that they can pay their court costs and repay their debts within 5 years. It's basically a court monitored repayment plan. Chapter 13 helps you repay your debt without losing your assets like your house.
I only recommend filing for bankruptcy if other debt relief programs have already failed and there is no other way you can repay your debt.

If you are above the means test for your state, then you probably will have to file chapter 13. It is primarily for those who cannot qualify for chapter 7, or for people who have assets that they want to keep that would not be allowed under a chapter 7 filing.

I seriously looked into Chap 13 but opted to settle on my own. I heard courts monitor your monies for up to 5 years and tell you what you can or cannot do with your money. Only to be used as last resort.

Filing bankruptcy should be your last option to free yourself of debt. There are various other strategies through which you can try to pay down your debt. You can either settle your debts to lower the outstanding debt amount, or yo can go for debt consolidation. Debt consolidation helps in reducing the interest rate, and lower the monthly payments.

However, debt settlement hurts your credit score.

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?
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