There are a number of reasons that you would file a Chapter 13 Bankruptcy. First, most people that are having financial problems have quite a bit of unsecured debt. Unsecured debt is an obligation which does not have a lien against any property.
Secondly, a debtor who is being charged interest by the IRS on a past due tax obligation can file a Chapter 13 to eliminate the post petition interest and penalties. Also, if someone is facing foreclosure, then a Chapter 13 can stop the foreclosure and help the debtor to get caught up on the arrears. Chapter 13 can also prevent repossession.