Some Reasons to file Chapter 13 include:
- Keeping your house and car safe from a Chapter 7 forced sale
- Being over median income and not qualifying for Chapter 7
- Being below median but having disposable income
- Not passing the means test
- Having disposable income per IRS standards
- Owing IRS or state taxes
- Having judgment liens
- Having HOA liens
- Being behind on car or house payments, want to keep the property, and will use the repayment period to get current on their loan
- Owing debts such as MVA, MD Central Collection Unit, and certain divorce related awards that are non-dischargeable in Chapter 7
- Co-debtor stay protection
- You’ve inherited or expect to inherit real property or other assets
- You have lawsuits you could file or are thinking of filing
- You have money owed to you
- You have life insurance with cash value
- You have an inherited retirement account that’s non-exempt
- Help with high student loan payments
- Having non-exempt assets
- Having made preferential transfers
- Owing debts not dischargeable such as priority taxes, child support, fraud judgments
- Having liens that are larger than the value of the assets securing the debt, which may be wiped out, or stripped, in Chapter 13 bankruptcy
- You receive large tax refunds
- Running a small business and not wishing to have the trustee interfere or take over the business
- Having prior income or transactions or future income that can be seized or reversed
- Having filed a prior Chapter 7 bankruptcy within the last 8 years
- You wish to have the option to voluntarily dismiss your case
- Having the option to file another case sooner should anything arise in the near future
- Remaining in control of your assets