Indianapolis Chapter 13 bankruptcy attorney
About Chapter 13 bankruptcy
Chapter 13 bankruptcy, often called a “wage earners plan” or “plan of reorganization,” operates differently than a chapter 7. In a chapter 13 “YOU” rather than your creditors develop a repayment plan. The repayment plan lasts over a 3 – 5 year period at a payment amount you can afford. Unlike a chapter 7 bankruptcy, which eliminates your unsecured debts and has no payments, a chapter 13 bankruptcy can be a useful tool to solve certain types of problems. For instance, a chapter 13 bankruptcy allows an individual to stop foreclosures and cure their delinquent mortgage payments. Chapter 13 also helps with past due taxes, back child support, vehicles in jeopardy of repossession, divorce settlement obligations, and can, in many cases, eliminate 2nd mortgages while allowing you to retain your home.
Most clients are surprised to learn how affordable a chapter 13 bankruptcy payments can be. If you are in danger of losing your vehicle, home, or your wages are in jeopardy of being garnished, you need to learn what a chapter 13 can do for you. The first step in solving any problem is determining what solutions are available. Together we can craft an affordable repayment plan that will protect your property and give you the peace of mind you deserve.
Frequently Asked Questions
Q1: What is Chapter 7 bankruptcy?
A1: Chapter 7 is the most common form of bankruptcy, often referred to as a “liquidation” process. Its main purpose is to discharge eligible debts and protect your assets, providing a clear path for a fresh financial start by eliminating overwhelming obligations.
Q2: What is the main goal of Chapter 7 bankruptcy?
A2: The primary objective of Chapter 7 bankruptcy is to eliminate or significantly reduce as much of your unsecured debt as possible. It’s designed to give you immediate relief and a chance to rebuild your financial future without the burden of overwhelming obligations.
Q3: Can I keep my property if I file for Chapter 7 bankruptcy?
A3: Yes, many clients are surprised to learn they can retain most, if not all, of their essential property during Chapter 7 bankruptcy. This typically includes items like cars, retirement accounts, cash, and household furnishings, thanks to specific legal exemptions designed to protect your assets.
Q4: How long does the Chapter 7 bankruptcy process typically take?
A4: The entire Chapter 7 bankruptcy process is usually quite efficient. From the initial filing of your petition to the final discharge of your debts, the procedure generally takes only 4 to 6 months to complete, offering relatively quick financial relief and a new beginning.
Q5: What immediate benefits does filing Chapter 7 bankruptcy provide?
A5: Filing Chapter 7 provides immediate relief by legally stopping most collection actions. Creditors are compelled to cease lawsuits, repossessions, harassing phone calls, wage garnishments, and foreclosure efforts, giving you crucial breathing room and legal protection.
Q6: Am I required to make payments to creditors during Chapter 7 bankruptcy?
A6: In most cases, no. Chapter 7 bankruptcy generally means you are not obligated to make payments to your creditors. The only exception is if you choose to reaffirm a specific debt, meaning you voluntarily agree to continue paying it, such as a car loan.
Q7: How can I get more information or start the Chapter 7 bankruptcy process?
A7: For more information or to begin the process, you can contact our office directly for a free consultation. As one of Indiana’s largest consumer bankruptcy firms, we are prepared to guide you through your options and assist you every step of the way toward financial freedom.
