The choice for which bankruptcy chapter is used to eliminate debts doesn’t always rest in the hands of Indiana consumers themselves. According to changes made by the 2005 Bankruptcy Act, all consumers must meet eligibility requires based on their income before a chapter is chosen. While they are not obligated to file a claim, Lawyers Ft Wayne IN provide them with invaluable information based on the chapter that is available to them.
Can You File Chapter 13?
In Ft Wayne, Indiana, consumers must have an income above $46,005 in order to file for chapter 13. This valuation is the median income for the area and the first eligibility requirement for this form of bankruptcy. An attorney establishes the consumer’s income by evaluating records for all income sources for the six-month period prior to the claim date. A failure to meet the income restrictions deems the consumer eligible for chapter 7 only. However, if they qualify for chapter 13; they could file chapter 7 if they prefer.
Double Exemptions in Chapter 13
Married claimants can acquire double exemptions for select properties through this chapter of bankruptcy, which could lessen their total liability. The main items that receive this benefit are real estate property, valuable assets, and automobiles. However, in most cases, the exempted value is based on the equity accumulated over time.
Consumers who are unsure whether they qualify for chapter 13 should discuss these options with an attorney promptly. It could prevent them from losing their home and provide them with additional time needed to settle their debts. If you wish to schedule a consultation with an attorney, you can visit for further details.
The Benefits of Chapter 13
In basic, chapter 13 is a repayment arrangement for all debts included in the claim. The court must approve the plan presented by the consumer and their Lawyers Ft Wayne IN through this option. The plan includes the values in which the consumer is required to pay to the court each month for distribution to their creditors. The most significant benefit of this form of bankruptcy is the automatic stay which prevents lenders from foreclosure on the primary home of the claimant.
For more info contact Ripke Law PC in Fort Wayne IN.
