It kind of sounds like they filed for chapter 13 reorganization rather than chapter 7..
It means they’re trying to get their Ducks lined up again rather than just writing everything off
The difference between the 2 chapters is based upon income and allowable expenses. Basically you have to make less than $82,000 to file Chapter 7 if your single, anything over that and you must file a 13. The 13 requires you pay only secured debt back over a 5 year plan. Chapter 7 wipes out all debt except typically your house and vehicle if you want to keep those. Taxes are exempt from bankruptcy but can be structured in the settlement to be paid.