13 Reasons to file Chapter 13

1) Debtor Educational Course can be completed before final plan payment versus 45 after 341 meeting in chapter 7

2) 0% pay-back to unsecured creditors (debtor's payments go to secureds and the Attorney -- as they should!)

3) No means test if case is converted to chapter 7. In the first place, 707(b)(3) says means test applies only to case filed "under Chapter 7 by an individual debtor whose debts are primarily consumer debts." Moreover, 348(b) does not invoke 707 in connection with conversions from 13 to 7.

4) Per 707(b)(3)(C) and (D), the Attorney's duty to perform "reasonable investigation" and "certify" that schedules are "not incorrect" applies only to cases filed "under Chapter 7." In fact, none of the new Attorney liability rules applies to Chapter 13 at all.

5) Minimize UST scrutiny, which will henceforth be focused on catching improper Chapter 7 cases.

6) Higher fees, including likelihood of post-filing fees collectible via fee petition.

7) Debtor can repay non-dischargeable taxes.

8) Per 524(i), if mortgage arrears are cured in a Chapter 13 plan, then upon discharge the debtor will have a cause of action against their mortgage company for misapplication of payments or improper fees and charges. Since there is no way for mortgage servicers to comply with this new statutory mandate, every Chapter 13 case involving a residential mortgage will give rise to such a cause of action.

9) Debts incurred to pay taxes are not discharged in 7 but are discharged in 13.

10) Obligations under a mairtal property settlement agreement that do not qualify as alimony are dischargeable.

11) Debtor can enjoy protection longer -- bar on refilling is from filing date to filing date, so as long as each case is carried for at least 2 years debtor can refile as needed.

12) Child support income not included in a 13, but is included in a 7

13) Filing fee is $274.00 versus $299.99.