There are 5 major reasons why people file for Chapter 13 bankruptcy:
1. Stop a foreclosure or repossession.
2. Protect an asset that would otherwise not be protected in Chapter 7.
3. The debtor makes too much money to file for Chapter 7.
4. The debtor has been discharged in a prior Chapter 7 case and is not eligible to file again; and
5. To consolidate debts that would not be dischargeable in a Chapter 7 case.
This is a very basic outline of why one would file Chapter 13.
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