Helping individuals obtain financial freedom through bankruptcy in
Lake, Porter, LaPorte, St. Joseph, Newton, Jasper,
Elkhart, Tippecanoe & Surrounding Counties.

Offering Free and Convenient
Telephone Consultations


Bankruptcy for Individuals: What are My Options in Indiana?

Home |Blog |Bankruptcy |Bankruptcy for Individuals: What are My Options in Indiana?

Looking For A Specific Post?



No one wants to declare bankruptcy, but sometimes it cannot be avoided. If you are an individual person or a married couple looking at your bankruptcy options, there are several types available. Chapter 7 is the traditional bankruptcy in which you discharge your debts and payments. Under Chapter 13, you are not trying to get rid of all your debt, just to potentially restructure and make your debt more manageable. There may be individual cases in which Chapter 11 is also an option.

If you have questions on bankruptcy options, it is best to speak with an Indiana bankruptcy attorney who can advise you which option is best for your particular circumstances.

Chapter 7 Bankruptcy

Chapter 7 is the most aggressive form of bankruptcy and it is often the last resort for many individuals in debt. Chapter 7 bankruptcy is available for individuals as well as business entities. Not everyone who wants to file bankruptcy will be allowed to file under Chapter 7. There is a “means test” that determines whether or not your income is low enough to qualify. This is designed to keep higher wage earners from filing Chapter 7 just to avoid paying their accrued debts. You may still qualify if you earn a decent monthly wage but have a high mortgage or car payment.

If you do pass the means test, the court will still look at other forms, your Schedule I (income) and Schedule J (expenses). If there is some money left over after deducting your monthly expenses, the court will determine that you can replay some of your debt and convert your case to a Chapter 13 bankruptcy.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is for people who have a significant monthly income or need to protect valuable property. They get debt relief while they pay their creditors from their discretionary income over the course of three to five years, depending on the repayment plan. In order to qualify, you cannot have over a certain amount of secured debt, like a house, or unsecured debt, like credit cards or medical bills. If your debt burden exceeds a certain amount, you won’t be able to file Chapter 13, but would need to look at individual Chapter 11 instead.

Chapter 11 Bankruptcy

While most people think about Chapter 11 for corporations, it is used for some individual bankruptcy filings as well. The legal fees are higher, but it can often be a better alternative for some people. The main reason people look at Chapter 11 bankruptcy is because they have exceeded the debt limits for Chapter 13. Even if you qualify for Chapter 13, there may be some legal benefits to a Chapter 11, like stretching out a mortgage payment that is in arrears.

Contact an Indiana Bankruptcy Attorney

If you have questions on how to proceed with filing for bankruptcy as an individual, it is important to meet with a knowledgeable Indiana bankruptcy attorney. At Whitten & Whitten, we specialize in bankruptcy filings and have over two decades of experience helping clients. Contact our office today to schedule a consultation.

Share Post: