what is a chapter 13 bankruptcy 
a chapter 13 bankruptcy for individuals is similar to chapter 11 for companies rather than liquidating most of an individual s assets like chapter 7 a chapter 13 bankruptcy allows them to keep more assets if they agree to and adhere to a court approved plan to repay their creditors 6the bottom linesubordination agreements are used to legally establish the order in which debts are to be repaid in the event of a foreclosure or bankruptcy in return for the agreement the lender with the subordinated debt will be compensated in some manner for the additional risk consumers will often encounter a subordinated debt agreement if they have more than one mortgage on their home and decide to refinance it 