Chapter 13 Bankruptcy is where an individual (through their attorney, typically) submits a plan to repay or reorganize their debts, and to catch up on payments for certain property that they want to try to keep. Most of the time, the Chapter 13 debtor (the person who owes the money) uses his or her income from their job to make payments each month. The payments are part of a Plan, submitted to the court for approval. As part of the Plan, some of the payments are made to a court-appointed official called the Chapter 13 Trustee. The Chapter 13 trustee usually has staff, and several attorneys, to handle the payments. The Trustee pays out the money to the creditors (companies or people who are owed money) based on the amount that the debtor pays. Some other payments are made directly to the companies.
Typically, a Chpater 13 debtor with a home pays the mortgage payments directly, and then makes an additional Plan payment to the trustee as part of the Plan. All creditors are required to stop collection activities, such as foreclosure on your house, or repossession of your car(s).