Chapter 13 offers individuals a number of advantages that are not under Chapter 7, including:

1. The opportunity to save the debtor’s home from foreclosure – Chapter 13 may cure delinquent mortgage payments over time, with the debtor making all payments that come due under the Chapter 13 plan on time
2. The ability to reschedule secured debts (such as automobile loans) – Chapter 13 plans can reschedule and extend secured debts over the life of the plan, usually at a lower interest rate set by the Court
3. Protections for third parties on “consumer” debts – Chapter 13 plans can offer protections for co-signers
4. Debt consolidation – Chapter 13 acts like a consolidation loan under which the debtor makes the plan payments to a trustee who then distributes payments to creditors; debtors will have no direct contact with creditors while under Chapter 13 protection