Do you know Indiana is among the nation’s top states for personal bankruptcy filings? That means if you’re living in the Hoosier state and feeling overloaded with bills every month, you’re definitely not alone. Thousands of people file for bankruptcy every year and about 32% are Chapter 13 bankruptcies. However, Chapter 13 may or may not be the right choice for you, so here’s a closer look at the pros and cons.
What are the Advantages of Choosing Chapter 13 Bankruptcy?
Chapter 13 comes with many advantages. It offers flexibility in payment terms for any debts that aren’t eliminated by your bankruptcy. It allows you to reestablish a good name with your creditors, which is especially important if you’re a business owner or if you work in the financial sector. Chapter 13 is also a great choice for homeowners because it can halt foreclosure and allow you to stay in your home while you catch up on mortgage payments.
What are the Disadvantages of Choosing Chapter 13 Bankruptcy?
Chapter 13 isn’t for everyone. If speed is a concern, consider that Chapter 13 plans often take three to five years to complete. It’s also worth considering that if you file for Chapter 13 bankruptcy now, it could limit your ability to file for Chapter 7 bankruptcy for six years from the Chapter 13 filing date.
Will Chapter 13 Bankruptcy Get Rid of All My Debts?
Bankruptcy does not eliminate all types of debt. Student loans are typically not eligible for discharge under Chapter 13 bankruptcy. You can’t get rid of alimony payments, child support payments, some back taxes, or amounts owed related to causing personal injuries because of diving while intoxicated. However, bankruptcy can wipe out most credit card debt, medical bills and other unsecured debt, making it easier for you to pay your remaining monthly bills.
How Do I Decide Whether to File for Chapter 13 Bankruptcy?
Weigh the decision carefully with the help of an experienced Indiana bankruptcy attorney. Consider your total financial picture, including any property and other assets you absolutely want to keep. Investigate exemptions that can help protect your assets. Follow the advice of your bankruptcy attorney and use Chapter 13 bankruptcy to satisfy your creditors. It can give you a fresh financial outlook.
Sawin & Shea – Indianapolis Bankruptcy Attorneys
Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of the overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process. Please do not hesitate to call us today at 317-759-1483 for a free consultation. We are ready to help.