Why would a debtor choose to file Chapter 13 over Chapter 7?
- If a debtor wishes to protect non-exempt property from liquidation that would be lost in a Chapter 7.
- The debtor is behind on auto or house payments and needs to cure the arrears over time.
- Debtor wishes to modify the secured debt on a vehicle or mobile home.
- Debtor is not eligible to file Chapter 7 or to obtain a Chapter 7 discharge.
- The debtor is seeking a super discharge provided for under Chapter 13 which may discharge debt not dischargeable in Chapter 7.
- The debtor wishes to protect a co-debtor on consumer debt from legal action.