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Common Reasons That People File A Chapter 13 Bankruptcy

Interviewer: What are the most common reasons you’ve seen people file for a Chapter 13?

Brad Weil: Some of the more common reasons to do a Chapter 13 are because you have non-dischargeable tax liability, which is that priority tax. A tax liability within the 3-year period, you are facing foreclosure on a house and you don’t want to lose the house, you want to clear the arrears through the plan of re-organization and resume your regular monthly mortgage payments. That’s one of the major reasons that people do a Chapter 13 is to save homes.