The main reason people chose a chapter 13 instead of the chapter 7 is to save their home. Filing a chapter 7 doesn’t mean you will lose your home but if your are behind it will not help you keep it. The chapter 13 is a plan that allows you to put all the payments that you are behind along with your credit cards debts into a plan to be paid back over the next five years.
The next reason some one will do a chapter 13 is that they make too much money to qualify for the chapter 7 which means you have disposable income in which to pay some money to the creditor over a five year plan, whether the creditors receive only Ten per-cent, or all the money at the end of the plan the rest is discharged.
The next reason is because of assets that can not be covered. Examples of un-protected assets would be boats, airplanes extra cars lake lots rental homes, Stocks, cash, and other such things. If you have these unprotected assets You would have a choice of surrendering the assets to be sold and the proceeds would be divided between the creditors or go into the chapter 13 and over the next five years pay the amount the assets are worth.