The Advantages of Chapter 13
A big advantage of Chapter 13 is that Chapter 13 debtors are given up to 60 months to make up past-due payments on loans secured by property that the debtor wants to keep. For example, if the debtor is 12 months behind on house payments, the debtor can force the lender to allow the debtor to pay the past-due amount over 60 months. Try getting a lender to agree to that outside of bankruptcy. Another big advantage of Chapter 13 is the ability to eliminate second mortgages on the underwater property. If the debtor's primary residence is worth less than the first mortgage, Chapter 13 allows the court to eliminate the second mortgage and make it like a credit card debt. The debtor gets to eliminate a substantial debt on the house forever.
Another advantage of chapter 13 relates to debts that are not dischargeable. Some debtors like to use Chapter 13 to pay off taxes and court-ordered obligations without incurring any further penalties. Generally, taxing authorities and courts do not grant 60 months to pay off these obligations. For example, even with a tax debt that is not dischargeable, the debtor can have up to 60 months to pay off the tax without incurring any penalties from the taxing authority and without permission from the taxing authority.