Chapter 13 — Common Reasons for Filing
The main reason people file a chapter 13 is to protect their home or car that they have fallen behind on the payments. The chapter 13 will force either the mortgage company or the car loan company to accept a plan to allow the person to keep their property.
Credit card debt is another good reason to file the chapter 13. Unless all your credit cards interest rates are at zero percent or low like a 2.9, the chapter 13 will allow you to go into a plan to pay either what you can afford or do it at zero interest over a five year plan. The zero interest applies to the IRS also. The chapter 13 will stop all penalties with the IRS also.
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