Bankruptcy provides a fresh start for people who are struggling with overwhelming debts. If you are trying to keep your home, car, or other belongings, filing for Chapter 13 bankruptcy in Indiana may be your best bet. As a reorganization, it allows you to completely eliminate some debts while negotiating a new payment plan for others. What is the average monthly cost after filing Chapter 13 in Indiana? Generally, this will be a minimum of several hundred dollars but varies depending on the amount of debt you have, your income, and other factors involved.
Chapter 13 bankruptcy is available through the U.S. Courts as an option to consumers who are in danger of losing secured property for which they are currently paying. It applies to items such as:
Unlike a Chapter 7 bankruptcy, which acts as a liquidation and allows you to completely eliminate certain debts while surrendering secured property, Chapter 13 allows you to retain ownership while renegotiating payments. It can help prevent you from being subject to foreclosure, repossession, or other legal actions. It can also be used to renegotiate payment terms (but not total amounts due) on taxes, student loans, or other ‘priority’ debts.
In Indiana bankruptcy court, Chapter 13 is referred to as a wage earners plan, as you need a steady income to make the required payment arrangements. These may be spread out over a period of between three and five years and the average cost is generally at least several hundred dollars, depending on the following factors:
Estimating an average Chapter 13 monthly cost is challenging due to all these variables. The Balance provides a general example: If you make $40,000, have yearly expenses of $30,000, $2,000 in non-exempt assets, and $17,000 total to be paid off in your Chapter 13 plan, your payment would be roughly $300.
At Whitten & Whitten, we can determine whether Chapter 13 bankruptcy is an option for you and estimate the average monthly cost in your particular case. To request a free consultation, call or contact our Indiana bankruptcy attorneys online today.