You may be considering filing bankruptcy in Indiana due to unexpected hardship. You are not alone when considering bankruptcy. In fact, in the month period ending June 30th, , there were 14, Chapter 7 filings in Indiana and 8, Chapter 13 filings in Indiana.. The purpose of this article is it to show you to the primary aspects of Chapter 13 bankruptcy in Indiana. Worrying about money and filing bankruptcy in Indiana normally go hand in hand. The biggest cost associated with a bankruptcy is attorneys fees. The first thing you have to determine is whether you need to file Chapter 13 to reorganize your household debts (or take advantage of Chapter 12 to restructure your family farm's finances). Trying to file Chapter 12 or 13 without the assistance of experienced bankruptcy . Indiana Chapter 13 Bankruptcy Information. Under a chapter 13 bankruptcy, a debtor proposes a year repayment plan to the creditors offering to pay off all or part of the debts from the debtor’s future income. You can use Chapter 13 to prevent a house foreclosure; make up missed car or mortgage payments; pay back taxes; stop interest from accruing on your tax debt (local, Indiana state, or .
Related videosChapter 13 bankruptcy explained
If you can stick to the terms of your repayment agreement, all your remaining dischargeable debt will be released at the end of the plan typically three to five years. Chapter 13 bankruptcy is generally used by debtors who want to keep secured assets, such as a home or car, when they have more equity in the secured assets than they can protect with their Indiana bankruptcy exemptions.
Chapter 13 bankruptcy is a reorganization whereas Chapter 7 bankruptcy is a liquidation. A chapter 13 bankruptcy allows them to make up their overdue payments over time and to reinstate the original agreement.
Additionally, people who have filed chapter 7 in the past 8 years must file chapter 13 and really high income earners may have to file chapter The case begins with the filing of the bankruptcy petition and the filing of a proposed payment plan. A hearing called the first meeting of creditors or hearing is scheduled in about 4 weeks. Typically, creditors do not attend this hearing. The hearing is not in front of a judge and it is not in a courtroom.
The attorneys in this office have had numerous hearings with each trustee so once we see who your case is assigned to we will be able to explain exactly what you can expect from the hearing and this process.
A chapter 13 bankruptcy case takes 3 to 5 years depending on various factors. The client makes monthly payments to the chapter 13 trustee while the case is pending. Bankruptcy is not the end of credit. It is just the beginning. Typically, most clients receive numerous offers for credit after the filing of the bankruptcy case.
After the bankruptcy has been completed, my office will obtain your credit reports to ensure that all of your creditors are properly reporting your debts. Credit reporting errors occur very frequently and we advise all clients that, for the next five years, if they ever try to obtain financing and they are declined, then contact us. There are several situations where a Chapter 13 is preferable to a Chapter 7. A Chapter 13 bankruptcy is the only choice if you are behind on your mortgage or business payments and you want to keep your property, either in Indiana or another state, at the end of the bankruptcy process.
A chapter 13 bankruptcy allows you to make up their overdue payments over time and to reinstate the original mortgage agreement. In general, if you have valuable property not covered by your Indiana bankruptcy exemptions that you want to keep, a chapter 13 filing may be a better option.