Portage Chapter 13 Bankruptcy Lawyer

Portage Chapter 13 Bankruptcy Lawyer

“We’ve Been Helping People from Merrillville and Northwest Indiana Get Out of Debt for 20 Years”

Portage Chapter 13 Bankruptcy Lawyer

Many people considering bankruptcy have valuable property that they do not want to lose. If they file for a Chapter 7 bankruptcy, then they can quickly wipe out debts, but at a price—the trustee can take their non-exempt property and use it to pay off creditors.

This is where a Chapter 13 bankruptcy comes in. Called a “wage earners” bankruptcy, it allows you to make regular payments on a payment plan and not lose any property as a result. At the end of the payment period, any remaining debts will be wiped out.

Who Qualifies for a Chapter 13?

Only people with a regular source of income can apply for a Chapter 13 bankruptcy. You also cannot have too much debt:

  • Unsecured debt cannot exceed $394,725
  • Secured debt cannot exceed $1,184,200

Many Indiana debtors consider a Chapter 13 if their income is too high to qualify for a Chapter 7, but many of our clients choose Chapter 13 even if they were eligible for a Chapter 7. Often, they want to save their home. Indiana’s homestead exemption will only protect $17,600 in equity in a home (double if married). If you have much more equity than that, you can lose your house by filing Chapter 7, but Chapter 13 will allow you to keep it.

What is the Payment Plan?

The centerpiece of a Chapter 13 bankruptcy is the payment plan. It will last three to five years, depending on your income, and during this time you contribute your disposable income to your creditors.

To calculate your disposable income, you subtract necessary expenses from how much you make each month. Necessary expenses include things like:

  • Rent or mortgage
  • Food
  • Utilities
  • Transportation costs

These expenses must be reasonable. In fact, the bankruptcy rules permit you to deduct only so much. For example, you cannot eat caviar every night and deduct the entire cost. Instead, there is a maximum you can deduct.

Your disposable income is what is left over after deducting reasonable expenses from your income. Each month, an Indiana debtor will pay this money to his or her creditors by cutting a check to the bankruptcy trustee, who will disburse the money.

At the end of the repayment period, some creditors will be fully paid, but some will not. You can often wipe out any unpaid amounts at the end of the payment plan if the debts qualify.

What are the Advantages of a Chapter 13 Bankruptcy?

The primary benefit is that you will not lose non-exempt property. Our clients in Indiana have also realized other benefits, including:

  • You can stop a foreclosure by filing for bankruptcy and catch up on your unpaid mortgage payments by including them in your payment plan.
  • You can stop wage garnishment of child support or spousal support and pay your arrearages by including them in your payment plan.
  • You can include your attorneys’ fees in the payment plan, making bankruptcy more affordable.

Contact a Portage Chapter 13 Bankruptcy Attorney

To find out whether you would benefit from filing for Chapter 13 protection, please reach out to us today. Schmidt Whitten & Whitten has helped many Indiana clients get some breathing room by reorganizing their debts. Contact us today to schedule a free consultation.

Schedule A Free Consultation

At Schmidt Whitten & Whitten, we offer a free consultation during which we will examine the facts of your case and advise you on how best to proceed

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Our Phone Number219-756-0555
Contact via Emailinfo@kmslawoffice.net
Our Location200 E. 80th Place
Suite 110
Merrillville, IN 46410
We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code. This information is designed for general information only. The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Past results and testimonials are not a guarantee, warranty, or prediction of the outcome of your case, and should not be construed as such. Past results cannot guarantee future performance. Any result in a single case is not meant to create an expectation of similar results in future matters because each case involves many different factors, therefore, results will differ on a case-by-case basis. By providing certain contact information herein, you are expressly authorizing the recipient of this message to contact you via the methods of communication provided.
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