Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney. Thanks for your question.
The biggest problem may be that MOST banking institutions will not allow an employee to continue working if he/she files for bankruptcy. There is no law on this issue, but that's the policy that most all banks have -- so that may be what prohibits you from filing. She should check on that before doing anything.
As for chapter 13, the basic rule is that you must have enough income to sustain a repayment plan
- - in other words, there must be proof that there's a cash flow to sustain payments. The good thing about a chapter 13 is that you get to keep all of your property, but the bad news is that you have to repay all of the money - - so you don't get a break in that regard.
However, under a chapter 13, you can reduce your monthly payment amounts by extending the terms of all loans. Also, you can remedy the default on your mortgage loans by repaying the debts over time. Here's a good link that outlines the chapter 13 process: https://www.google.com/search?q=chapter+13+bankruptcy&ie=UTF-8&oe=UTF-8&hl=en&client=safari
If you can file a chapter 13, it is the best option of all of the bankruptcy filings.