Chapter 13 bankruptcy is considered a repayment plan while Chapter 7 bankruptcy is used to liquidate debt. Therefore, you can use a Chapter 13 filing to avoid foreclosure and pay off all or a portion of your debt to creditors.
As a result, a Chapter 13 attorney in New Haven, IN can assist with the following:
* Prevent foreclosure of your home and help you catch up on mortgage payments
* Make up any missed automobile payments
* Remit back taxes and stop the accrual of interest on the debt
* Keep non-exempt property
Getting Rid of Your Current Debt
If you follow the repayment plan per the instructions of the court and through the direction of a Chapter 13 attorney, you can actually get rid of your debt. It typically takes three to five years of repayments to meet your goals.
The amount of the repayment is dependent on a number of factors, such as the disposable income of the debtor, which is calculated per the state’s means test. Also, the amount that is paid to the creditors must be the same amount as would be received if the debtor chose to file Chapter 7 bankruptcy.
What You Must Bring to the Table
If you work with a Chapter 13 attorney to file bankruptcy in Indiana, you must demonstrate that you have a regular and ongoing source of income. In addition, you need to show that you have some disposable income to direct toward a repayment plan.
Reorganizing Your Debt
Chapter 13 bankruptcy is usually used when a debtor wants to keep a secured asset such as a house. The debtor may also have more equity in the collateral than what can be protected by using the state’s bankruptcy exemptions. That is why Chapter 13 bankruptcy is known as a reorganization of debt.
Who to Contact in Indiana
If you wish to know more about how to proceed with a Chapter 13 bankruptcy filing, contact a law firm such as Fred Wehrwin, P.C. Make sure that you have a fully knowledgeable attorney on your side when you take this step. You can also connect them on Facebook.
