At Halcomb Singler, LLP, our Carmel bankruptcy attorneys help those who need to file a Chapter 13 Bankruptcy in Indiana. A Chapter 13 Bankruptcy differs from a Chapter 7 Bankruptcy because it is a repayment plan, not a “straight” bankruptcy. Chapter 13 Bankruptcy is commonly called the “wage earners” plan because the debtor must have some sort of money coming in to make payments to the bankruptcy trustee, who then turns and distributes the payments to creditors. A Chapter 13 repayment plan lasts from three (3) to five (5) years and debtors often pay back much less than they owe to creditors over the course of the plan.Chapter 13 can also be a very helpful tool in the event that you are facing foreclosure, if a foreclosure lawsuit has been filed against you or if you have received notice of a sheriff sale. In a Chapter 13 Bankruptcy, it is possible to take your mortgage arrearage and build it in to your repayment plan so that you are able to get your house payments current without additional late fees and harassment. In addition, the filing of a Chapter 13 Bankruptcy will delay a sheriff sale indefinitely so long as you continue to make your required mortgage and trustee payments.In the Southern District of Indiana, a Chapter 13 Bankruptcy may also help in stripping off a wholly unsecured second mortgage. This means that if your house is worth $100,000.00 and you have a first mortgage of $90,000.00 and a second mortgage of $20,000.00 that it is possible to strip off the second mortgage lien because there is no equity in the house for that second mortgage to attach.In addition, if you purchased a vehicle more than 2.5 years prior to the filing of your Chapter 13 Bankruptcy and your vehicle is worth less than you owe, it is possible to repay only the current value of the vehicle through your Chapter 13 Bankruptcy Plan.
Will I qualify for Chapter 13 Bankruptcy?
So long as you have debts within the limits set forth in the bankruptcy code and have left over income after paying your reasonable living expenses, you will likely qualify for a Chapter 13 Bankruptcy. In a Chapter 13 Bankruptcy, you are also able to protect assets that may not be exempt in a Chapter 7 case.
Should I try Debt Consolidation before Chapter 13 Bankruptcy?
This is a personal choice that individuals and families have to make. Some individuals find success with debt consolidation. However, in a Chapter 13 Bankruptcy, you are represented by an attorney. In addition, your creditors do not have the option to opt in or out in a Chapter 13 Bankruptcy like they can with debt consolidation. So long as the repayment plan filed with the court complies with the bankruptcy code, it will be confirmed, or approved, by the bankruptcy court and your creditors must take what they are given according to the Chapter 13 Plan.
A Chapter 13 Bankruptcy Can Help:
Whether you decide to move forward with a Chapter 13 Bankruptcy or a Chapter 7 Bankruptcy, wish to attempt a creditor workout to settle your debt without the need for bankruptcy or are just looking for some information, the first consultation is completely free.
For a free legal consultation with one of our Chapter 13 Bankruptcy Attorneys, please complete and submit our contact form or call us directly at 317.575.8222. Evening and weekend appointments are available.
*Halcomb Singler, LLP, is a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code.
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