Final answer:
Chapter 13 bankruptcy is designed to consolidate a debtor's debt and reduce monthly payments while permitting creditors to receive a portion of what they are owed over a three to five year period.
Step-by-step explanation:
The chapter of the U.S. bankruptcy code that combines the debt of the debtor and reduces the monthly payments, while allowing a potential for a provider to receive a portion of what is owed, is Chapter 13. This bankruptcy chapter is often referred to as a wage earner's plan and allows individuals with a regular income to develop a plan to repay all or part of their debts. Debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 7 bankruptcy, on the other hand, involves the liquidation of assets to pay off debts, Chapter 11 is typically used for business reorganizations, and Chapter 9 is for the bankruptcy of municipalities.