Chapter 13 Bankruptcy

Who We Help

Chapter 13 fits a wide range of circumstances. We understand that bankruptcy can have a negative connotation, but some positives come with bankruptcy. Bankruptcy does not have to ruin you financially. You may find yourself in one of these situations:

• You are earning income, but your current debt payments are no longer manageable. A repayment plan can reshape what you owe into something you can actually afford.
• You need a plan that reflects your real life. Your repayment plan has to account for your income, household expenses, debts, and what you can realistically pay each month.
• You have missed payments and want to keep your home. Chapter 13 may give you time to address missed payments through a repayment plan while you stay current on your ongoing mortgage. Federal courts note that Chapter 13 is often used to help people keep valuable assets such as a house.
• You want to catch up and hold on to what you rely on. If you are behind on a car loan or mortgage, a plan can help you catch up and avoid losing property you count on daily.
• Chapter 13 may simply be the better fit for you. Your income, assets, or financial goals may make Chapter 13 the more realistic option compared to other forms of relief.

If any of these sound familiar, a short conversation with our team can help you understand where you stand. Our Chapter 13 bankruptcy attorneys are ready to help you determine the best strategy to handle your situation.

The Chapter 13 Process in Indiana

When most people first learn of Chapter 13 bankruptcy, they have many questions about the process, what to expect, and whether it is right for them.  Every case is different, but most Chapter 13 filings in Indiana follow the same general path. Here is what you can expect:

1. Complete credit counseling. Before filing, you must finish an approved credit counseling course. This has to happen within 180 days before you file.
2. File your petition and documents. You submit your bankruptcy petition along with detailed financial information. This typically includes a list of your debts, six months of income history, verification of four years of tax filings, identification, and a record of your assets and monthly living expenses.
3. Propose a repayment plan. You and your attorney build a realistic plan showing how much you will repay and over what period. The court reviews and confirms the plan.
4. Make monthly payments to the trustee. Once your plan is approved, you send one monthly payment to a bankruptcy trustee. The trustee distributes those funds to your creditors on your behalf.
5. Complete the plan. Most repayment plans run for three to five years. When you finish, you have worked through the debt included in your plan and can begin rebuilding.

Throughout this process, the automatic stay keeps creditors at bay, giving you the stability to follow your plan without constant pressure.