When is Chapter 13 preferable to Chapter 7?
Chapter 13 is usually preferable for debtors who: (1) are substantially behind in mortgage installment payments but who wish to keep their homes, (2) want to repay all or most unsecured debt (and have the income with which to do so) but need protection from their creditors while they do, or who want to prevent the further accrual of interest and penalties on their debt while they repay it; (3) want to keep nonexempt property or exempt property securing debts, either of which would be lost in a Chapter 7 case; (4) are not eligible for a discharge under Chapter 7; or (5) have substantial debts that are not dischargeable under Chapter 7 but are dischargeable under Chapter 13.
