hi Hopeful, we don't have chapter 13 in Australia but it sounds like a humane alternative to full blown bankruptcy. If you do decide to go down that path at least you'll have paid back some of the money owing, and that's a good feeling.
If you are constrained for money and have to live frugally for some time there's a lot of info online to help. I follow an Australian version called Cheapskates which would be also applicable to any country. You'd be amazed how well you can live on very little.