Why file Chapter 13 Bankruptcy?

On Behalf of | Aug 2, 2010 | Bankruptcy |

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.