If you do find yourself having more money than expected, it’s understandable that you would want to know if an early payoff is a possibility. No one wants to be beholden to their debt if they can simply pay it off and get it out of the way earlier than expected. 

Unfortunately, paying off your Chapter 13 bankruptcy early can have consequences and might not even be possible. To understand how this works, it’s helpful first to understand how Chapter 13 bankruptcy payment plans work, which we will get into below. 

It’s important to note first, however, that every case is different and depends on your individual situation. So if you have further questions or are ever in doubt, you should consult with an experienced Indiana Chapter 13 bankruptcy attorney in your local area. They can review your case and offer you guidance on the best course of action for your unique situation. 

Chapter 13 Bankruptcy and Disposable Income

When you file for Chapter 13 bankruptcy, you enter into a court-approved repayment plan that allows you to make more affordable payments over a three to five-year period. Once a plan is agreed upon, you will sign a contract, which ensures your creditors are paid as discussed over the designated time period. 

The amount you are required to pay each month will be determined based on your “disposable income,” which is the amount of money you have left over after paying all of your allowed or reasonable monthly expenses. Thus, you cannot spend your money on just anything and then use what is leftover for the repayment plan. Allowed or reasonable expenses are limited to things like rent, food, utilities, and other necessities. 

Your disposable income can also change, which means the amount you are expected to pay for your Chapter 13 repayment plan can also change. For example, if you get a raise at work or start working another job that pays you more but your monthly expenses remain the same, this means your disposable income has increased, and thus your repayment plan amount will increase. 

Your income will also determine the time period over which your repayment plan will take place. If your income is less than Indiana’s median state income when you file, you will have to commit to at least a three-year plan. If your income is above the state median income, you will likely commit to a five-year plan.  

Paying Off a Chapter 13 Bankruptcy Early

So, can you pay off your Chapter 13 bankruptcy early? In most cases, the answer is no. This is because of what was just explained above, but there are essentially three primary reasons: 

1. You are subject to the timeframe of your contract. Just because your income has increased does not mean you can just pay everything off early. When your disposable income increases, it means your repayment plan amounts will increase, but you will still be required to make them for the entire time period that was initially agreed upon in your contract. 

2. You will not be granted a discharge. Part of the contract agreement when you file for a Chapter 13 bankruptcy is that once you have made all payments for the entire commitment period, any remaining debt will get discharged or wiped out. However, if you pay off your repayment plan early, you are essentially breaking your contract and your commitment to making payments for the three to five years, which means you are no longer eligible for your remaining debt to be discharged. 

3. Your creditors will object to early payoff. If you do want to pay off your plan early, you must not only get court approval, but you must also notify your creditors and get their approval as well. And unfortunately, most creditors will object to this. This is because they know that an early payoff means you are likely making more money, and thus they will want your payments to increase for the full duration of your commitment period rather than letting you payoff early as they get more money that way. 

The Exception to Early Bankruptcy Payoff 

The only exception to early payoff that courts and creditors will typically allow is if you pay off your initial debts in full. A Chapter 13 repayment plan means your creditors are getting less than what you actually owe. If, however, you start making enough money to pay off your original debt amounts, meaning the full amount of your debt, then your creditors will likely agree as it means they are getting 100% of their claimed amount that is owed. 

How Sawin & Shea, LLC Can Help

If you have questions or concerns about your Chapter 13 bankruptcy, the team at Sawin & Shea can assist you. Call our office at 317-759-1483. We understand how confusing, overwhelming, and even scary filing for bankruptcy can be, and we are dedicated to helping our clients achieve the best possible results. 

The post Can I Pay Off My Chapter 13 Bankruptcy Plan Early appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

If you’re thinking of filing for bankruptcy and you live in Indiana, you may be wondering whether it could eliminate your tax debt. Hoosiers can sometimes get their tax debt discharged during an Indiana bankruptcy. However, you may have received conflicting advice about whether or not it’s possible to make this happen. So let’s settle it once and for all. Here are the answers you need about discharging tax debt.

When Can Tax Debt Be Discharged by Bankruptcy in Indiana?

Indiana debtors may have their tax debt discharged under certain circumstances. If the tax debt is at least three years old, it may qualify for a discharge. This includes both back taxes owed to the Internal Revenue Service (IRS) and to the Indiana Department of Revenue. But the debts must be at least three years old at the point you file for bankruptcy.

Are There Any Exceptions?

There are some exceptions that could prevent your tax debt from being discharged during either a Chapter 7 or Chapter 13 bankruptcy. The relevant tax returns must have been filed two years before your bankruptcy. In fact, recent court rulings have indicated that filing returns late leads to the debt not being dischargeable in bankruptcy. Also, you must have filed the tax returns yourself, without the IRS filing them on your behalf. Finally, tax debt assessed within 240 days before you file your bankruptcy case is not discharged.

What If My Debt is Too Recent?

If your debt is too new and hasn’t yet reached the three-year point, you have two main options. First, you could wait until the debt hits the three-year mark, being sure to file your tax returns timely. However, in the meantime, your financial situation could get worse. Another option is to file for bankruptcy, anyway, knowing your back taxes probably won’t be discharged but many other debts will be. This creates financial breathing room to pay off your tax debt. Also, a Chapter 13 bankruptcy can create a plan under the court’s protection that can pay recent, or priority, tax as part of the debt reorganization plan.

If I Have Overwhelming Tax Debt, What Should I Do Next?

When tax debts are contributing to an overwhelming financial burden, consult a bankruptcy attorney as soon as possible. They will look at the details of your circumstances and determine key factors, like how recent the debt is, when your tax returns were filed, whether any filing/payment issues are reported and any other factors involved.

No matter which route you take to resolve your tax debt, your bankruptcy attorney will be by your side to provide valuable wisdom and counsel. With their help, you can finally shed overwhelming debt and take a positive step forward.

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 or send an email for a free consultation. We are ready to help.

The post Can Bankruptcy Help Me With My Tax Debt? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Before you file for Chapter 7 or 13 bankruptcy, you may begin to wonder what your life will be like after your bankruptcy plan takes effect. What’s your financial outlook? Will you have enough money to cover your basic living expenses? How will the bankruptcy affect your credit score? Will you ever be able to buy a house again? These are all natural questions and concerns. Let’s take a look at how a bankruptcy plan typically affects someone’s life, so you can picture it more clearly.

How Will My Life Change After Bankruptcy?

The first thing you’ll notice is that the collection calls stop. Creditors are required to stop contacting you as soon as a bankruptcy case is filed. Because bankruptcy gives you a fresh financial start, you’ll also notice that for the first time in a long while, you’re actually able to pay your monthly expenses without getting overwhelmed.

A bankruptcy deals with your debt and leaves you with something more manageable to handle. This will probably make you feel less stressed, more capable of managing your finances, and more optimistic about your financial future.

Will Anyone Know That I Went Through a Bankruptcy?

This is a great question bankruptcy attorneys hear frequently: Will my friends/family know I declared bankruptcy? In most cases, no. However, bankruptcy filings are a matter of public record. The days of newspapers printing bankruptcy filing information are largely gone. So beyond your creditors, bankruptcy lawyers, and the court officials, few people will know about your bankruptcy unless you tell them.

The only exceptions would be people who have given you loans, people who have sued you, or an employer if you had a financial issue like a garnishment. But even if these people find out, it’s against the law to discriminate against you due to bankruptcy. It’s not something to be embarrassed about. It’s a positive step toward financial stability.

Will the Bankruptcy Ruin My Credit Forever?

Bankruptcy doesn’t ruin your credit in the long run. Actually, in many cases it actually improves your credit score. That’s why people who have completed bankruptcy plans often find a steady stream of new credit offers in their mailboxes. Bankruptcy wipes the slate clean so you can start over and make new choices.

Nearly 780,000 people in the U.S. filed for bankruptcy last year to get a fresh start and improve their credit. If you’re wondering about the timeframe, it typically takes somewhere between 3-4 months from filing to discharge for a Chapter 7 bankruptcy and 3-5 years for Chapter 13. After the bankruptcy, your credit score should begin to rise.

Will I Ever Be Able to Buy a House or Car Again?

There aren’t any laws that prevent you from buying a house or car after bankruptcy. In fact, after bankruptcy your credit score will improve and your debt to income ratio will look much better to the credit bureaus. That’s good news for getting a mortgage or car loan. Some government programs and private lenders do require waiting periods after a bankruptcy.

However, the lending market is very competitive, and you’ll likely be able to find a lender that will work with you after a bankruptcy. Remember, by choosing bankruptcy you are taking a responsible step toward better management of your finances. That’s a good thing for your credit, and a good thing for your future.

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 or send an email for a free consultation. We are ready to help.

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 or send an email for a free consultation. We are ready to help.

Video Transcript

One question that my clients generally have during the bankruptcy process is what’s life going to be like after bankruptcy? Bankruptcy gives you a fresh start. It helps you build a platform where you can start making your financial life better away from all the stress of collection calls, harassment and lawsuits. It’s a way you can start getting back on track with your financial life, so you can get things like mortgages and car loans at better interest rates on the future. Please give us a call today at 317-759-1483. We offer a free consultation. if you’re having problems with your debts. We can help you get back on track.

The post [Video] What is Life Like After Filing for a Chapter 7 or 13 Bankruptcy? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Each year, about 30 to 38 percent of all bankruptcy filings are for Chapter 13 bankruptcy. Chapter 13 provides welcome relief to people who are overwhelmed with debt and need help satisfying their creditors. If you’re in this situation, you’re probably wondering whether you’ll have to repay all your debts. It’s time to contact an experienced bankruptcy attorney. Your attorney will help you understand the two primary paths of Chapter 13 bankruptcy: repay what you can afford to repay or repay what you have to repay.

Is Chapter 13 Bankruptcy the Right Choice for Me?

Chapter 13, also known as a reorganization bankruptcy, helps you develop a budget with a detailed repayment plan to satisfy your creditors. A couple of factors, including your income and the value of your assets determine how much you have to pay back to unsecured creditors. A bankruptcy trustee, assigned by the court will establish what assets you hold, like a house, car and other property, and they will also look at your income and the total amount of your debt. Chapter 13 bankruptcy is a good choice for homeowners who are behind on house payments, because bankruptcy can halt a foreclosure and increase your chances of keeping your home. It’s also a good choice if you want to keep your car so you can get to work. Chapter 13 bankruptcy can help protect valuable assets and preserve your peace of mind.

In Chapter 13, Will I Have to Pay All My Creditors Back?

A very small percentage of debtors in Chapter 13 bankruptcies pay all of their creditors back. Most Chapter 13 repayment plans pay a small percentage of their unsecured debt. Chapter 13 bankruptcy allows you to use only discretionary income as payment, which is the amount above your basic living expenses, in your bankruptcy plan. Your debts will be prioritized according to type. Some unsecured debts that are low priority, like medical bills or credit cards usually receive cents on the dollar over the life of a plan. Balances of most unsecured debts not paid during the plan life are discharged. Debts like child support orders, student loans, and some tax debts usually can’t be cleared in bankruptcy.

What if My Income is High, But I Still Can’t Afford to Repay My Debt?

Chapter 13 bankruptcy is a great choice for someone who has a high income but is still so deeply buried in debt they can’t afford to repay it. Maybe you have extraordinarily high medical bills from a health emergency. Perhaps you have huge credit card bills that you can’t afford, even with a fairly large paycheck. Because Chapter 13 is a reorganization plan, it could help you pay down or forgive these bills while protecting your home, car and perhaps other assets.

What if I Have Very Low Income?

Chapter 13 bankruptcy can also be a good choice for people with low incomes, although you may want to explore Chapter 7 bankruptcy, too. For a low income earner, it’s difficult to have any discretionary income left after paying basic expenses. In this situation it can still be good to select Chapter 13 if you have a house or car you want to protect from a foreclosure. The automatic stay prevents further actions against you while you pursue your bankruptcy plan. Your creditors and government entities will have to wait, and this means you may be able to remain in your home and continue using your car. Consult a bankruptcy attorney to be sure of the best path forward.

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 or send an email for a free consultation. We are ready to help.

Video Transcript

Another common question that we see on a regular basis is, “Do I have to repay all my debts if I file for Chapter 13 bankruptcy?” Well, in a Chapter 13 bankruptcy generally speaking, there two different approaches. You either a) pay what you can afford to repay, or b) pay what you have to repay.

And those two differ depending upon your income and what you’re trying to accomplish in your Chapter 13 bankruptcy. What you can afford to repay is based primarily on your income vs. your expenses. So individuals that have a high income level usually end up paying more of their debts simply because they have the ability to repay their debts.

Now, sometimes that means they repay all their creditors, but in most cases that is not the case. In a Chapter 13 bankruptcy where you’re paying what you have to repay, that’s designed for individuals that are trying to stop a house that’s in foreclosure, if you’re in mortgage arrears, to pay for a vehicle at a reduced interest rate, to pay certain types of taxes. And in those types of cases, their income isn’t as important as how much debt they have to repay to resolve those issues that they want to take care of.

So if they are attempting to stop the foreclosure and to catch up the mortgage payments, we have to have enough money in the Chapter 13 bankruptcy to accomplish that goal. So when we look at plans, in most cases we’re trying to minimize or reduce the amount of money that you are repaying to unsecured creditors, creditors such as credit cards, medical bills, personal loans.

The goal in these cases is not to repay those types of creditors, but to minimize the amount you pay. I hate to say it, but in Chapter 13 bankruptcy, nobody gives you a thank you or an atta boy for paying more of your debt. Bankruptcy is bankruptcy. So if you are going to file a bankruptcy, the goal is to minimize what you repay, and to repay as little debt as possible, but still holding onto the assets you wish to maintain and keep.

The post [Video] Do I Have to Repay All My Debts If I File For Chapter 13 Bankruptcy? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

When you can’t afford to make your car payment and get months behind, it’s a tough situation. The car financing company may threaten to repossess your car or send a collection agency after you. You might wonder if you’ll wake up one day and find your car missing from the driveway. Don’t panic. You have the option of filing for bankruptcy, stopping debt collection calls and protecting your car. Get the help of a bankruptcy attorney as soon as possible.

How Do I Save My Car if I’m Behind on Car Payments?

Chapter 13 bankruptcy, also known as a reorganization bankruptcy, organizes your debts and reduces your payments down to a manageable level. You and your bankruptcy attorney can use Chapter 13 bankruptcy to sort through all of your debts and find ways to protect your assets. This means you may be able to prevent your car from repossession and stop the finance company from pestering you in the meantime. It gives you a chance to catch up on your car payments and get your finances in order.

How Do I Stop the Debt Collectors From Calling Me?

Here’s some great news about Chapter 13 bankruptcy: It makes creditors leave you alone. When you file, you gain the protection of an automatic stay, which tells your creditors to halt calls, letters, and other communications intended to collect money from you. The car financing company will have to stop contacting you during your bankruptcy window and give you time to complete the repayment plan successfully. It’s a breath of fresh air for anyone who has been struggling to make car payments.

What is the Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act (FDCPA) is the federal law that protects people from certain practices by creditors and collection agents. The FDCPA is always in effect, but it is especially relevant during your bankruptcy case or after its discharge. It means debt collectors can’t contact you after you have retained a bankruptcy lawyer or do any of the following: harass you, use profane language, make threats, contact your family members, make misrepresentations, claim to be an attorney or law enforcement officer or make false promises about resolving your debt. If a debt collector is engaging in these practices, discuss it with your bankruptcy attorney immediately and be sure to document it thoroughly. If you sue one of these companies and win the case, you may receive statutory damages up to $1,000 plus attorney fees.

Will the Chapter 13 Bankruptcy Payments Be Affordable?

Chapter 13 bankruptcy is intended to be an affordable process that allows you to get caught up on your debt and still have enough money to cover your basic expenses. It will take into consideration your specific needs and finances. If you’re worried about being able to pay pack all of your debts, talk to a bankruptcy attorney about your options. In Chapter 13, you do not pay all of your creditors back. In most cases, the bankruptcy process will help you reduce the interest rate you pay on your car, stretch out your payments, reduce your monthly payment amount and manage your finances more easily overall. It’s a fresh start that will help you get back on track.

Sawin & Shea LLC – 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 LLC 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 or send an email for a free consultation. We are ready to help.

Video Transcript

The post [Video] Can Bankruptcy Bring Debt Relief If My Car Payments Are Behind? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Bankruptcy attorneys often get questions from their clients like, “Why is my bankruptcy so different from my friend’s?” The question tends to arise when it seems that a bankruptcy isn’t going the same route as a friend or family member’s bankruptcy. Maybe it’s taking longer to resolve or it feels that your debts are being handled differently. Don’t worry. It’s common to feel this way. We’ll help you understand why bankruptcy cases can vary so much.

If the Details Seem the Same, Why is My Case So Different?

At first glance, it might seem that you have a very similar situation to one of your friends or a member of your family. But when you start looking at the details, each bankruptcy filing can be quite different from one another. Are you 100% sure that your income and debts are exactly the same as the other person’s? That’s pretty unlikely. Do you have special circumstances to consider, like child support, back taxes, student loans or pending lawsuits? Are you trying to keep your house or your car? Each of these factors has an impact on your bankruptcy.

Why Does My Income Matter?

Your income is a big part of what makes your situation unique and it will be a factor in whether you choose Chapter 13 or Chapter 7 bankruptcy. You can’t choose Chapter 7 if your monthly income during the six months prior to filling is more than your state’s median income, or if you fail the “means test” that examines your income. In a broader sense, your income is used to establish the amount of your disposable income, which affects how your debts are handled in a bankruptcy. Even a small difference between your income and a friend’s or family member’s could mean your bankruptcy cases will be treated very differently.

Will My Bankruptcy Case Take Longer Than Theirs?

It is definitely possible that your bankruptcy case will take more or less time than someone you know. A Chapter 7 bankruptcy can be resolved in as few as three to four months. A Chapter 13 bankruptcy usually takes three to five years. The time frame can also be impacted by foreclosures, back taxes, asset issues, and or whether your creditors object to the discharge of their debt in your bankruptcy. Try not to judge the success of your bankruptcy plan by the time it takes. The goal is to get you the best result possible. Sometimes it takes time to make it all happen.

Someone Is Giving Me Advice That’s Different Than My Attorney’s – What Should I Do?

Sometimes a client will tell us that their friend or family member is giving them different advice than their bankruptcy attorney. Beware of bad advice from loved ones. While they may have the best intentions at heart, they can easily steer you in the wrong direction. They likely don’t know the law and how it applies to your unique situation. You can trust your bankruptcy attorney to offer you the best legal advice. Their number one job is to be your advocate. Rely on your bankruptcy attorney to help you find the best path forward, even if it’s different from someone else you know.

Sawin & Shea LLC – 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 LLC 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 or send an email for a free consultation. We are ready to help.

Video Transcript

A common question we get asked all the time is “Why is my bankruptcy case different from my friend’s or family’s cases?” Well, the basic reason for that is their facts are different.

Oftentimes, people are trying to accomplish different goals in their bankruptcy. Everyone is trying to get rid of their credit cards, medical bills, personal loans, that’s pretty standard.

But the fact patterns for each case are very different. Some people are trying to save a house or a car, or protect assets that they wish to keep, or some families have higher incomes that are required to repay some of their debts – because of their income level.

So each case on its own is fundamentally different and will cause a great variance in the way the case will proceed. So unless somebody’s case is exactly the same and you know all the details about their case, there is no way that any case will be exactly the same.

To get real answers about how your case should proceed, you just need to talk to experienced bankruptcy attorneys like our office, and we can walk you through the process and at least explain to you all of your options so that you can understand fully how you should proceed and what will better suit your needs.

The post Why Is My Bankruptcy Case Different From My Friend’s and Family’s Cases? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

You’re facing one of the most feared situations any taxpayer can face: a tax levy. The IRS has far-reaching powers to enforce a tax levy, including seizing your assets and property. If you receive notification of a tax levy, delaying your response can add to the penalties you owe and may cause the IRS to take further action. Contact an experienced bankruptcy attorney as soon as possible about tax levies and how you may be able to use Chapter 13 bankruptcy to protect yourself when the IRS is acting against you.

What is a Tax Levy?

A tax levy is essentially a claim on your assets by the IRS. When you owe money to the IRS and fail to pay it off for a long period of time, they are permitted to seize your personal property, garnish your wages, drain your bank accounts, sell vehicles you own, and pursue the seizure of your real estate – including your home. They can even contact your employer, employees, vendors, customers and other parties in an attempt to establish your financial status and gain control of your assets. For you, it can be a scary situation, worthy of your concern.

How Do I Get a Levy Released?

There are some circumstances that would cause the IRS to release your levy quickly. You may be able to prove that you don’t owe it in the first place or that you already paid the money. If you can prove that it is causing you an undue economic hardship that severely impacts your basic living expenses, they may release the levy. Setting up an installment agreement or making special arrangements with the IRS is another route. However, tax levies are sometimes in place for long periods of time, causing ongoing headaches while the IRS pursues its action against you.

How Does Chapter 13 Bankruptcy Protect My Assets?

When you work with a bankruptcy attorney, they can help you protect your assets and prevent the IRS from taking them away. Under Chapter 13 bankruptcy, your wages, property and belongings are shielded from the IRS for a period of time while you work through a payment plan. This keeps your assets out of reach of the IRS and gives you more time – usually a five-year period – to clear up your financial picture. This can be a huge relief at a difficult time when the IRS is putting pressure on you to pay.

Will the Plan Be Affordable for Me?

Chapter 13 bankruptcy is designed to be affordable for you, so you can get your finances back on track. Under Chapter 13, you will create a detailed repayment plan that allows room for your basic living expenses. You may be able to protect your home, car, tools you need to work, and other personal property. Work with a bankruptcy attorney to understand this option and put it to use for you. It’s a powerful way to protect yourself from IRS tax levies and pursue a fresh financial future.

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 or send an email for a free consultation. We are ready to help.

Video Transcript

Tax levy. Probably one of the most fearsome things that consumers face. The Internal Revenue Service can seize your bank accounts, can seize your assets, and can pursue and garnish your wages, and even sell your property. If you have received a tax levy, you cannot delay.

One option for you is to look at bankruptcy, specifically a Chapter 13 bankruptcy, to help you resolve your tax situation. In a Chapter 13 bankruptcy, we can prevent the Internal Revenue Service from seizing or pursuing your assets through the court’s protection. In a Chapter 13 bankruptcy, we can help you structure a plan to repay these tax debts over a five year time period. And that prevents the Internal Revenue Service from garnishing your wages.

If you need a plan that you can potentially afford and prevent the Internal Revenue Service from seizing the things that you need, your wages, property, and belongings, please give us a call, we’d like to help you.

The post Can Chapter 13 Bankruptcy Help With An IRS Tax Levy? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Will I Ever Get My Car Back If It’s Repossessed?

Has your vehicle been repossessed? Before you panic, take a deep breath – and know your rights.

The United States is currently experiencing the highest rate of automobile loan defaults this century – and that includes the rate of defaults during the recent financial crisis. At any given time, four and 10 percent of all U.S. car payments are at least 90 days late. That means repossessions are becoming increasingly widespread as creditors try to limit their losses. A repossession happens when a financing company believes you have gone too long without making full payments on the vehicle. They usually take back the vehicle without warning, sending someone to tow it right out of your driveway. Their next move will be to sell the vehicle as fast as possible. If this has happened to you, move quickly to get your car back with the help of a bankruptcy attorney.

Can I Fight A Vehicle Repossession?

Even if your car has suddenly disappeared from your driveway, that doesn’t mean it’s gone forever. This could turn out better than you’re expecting because you still have rights in this situation. If you need your car to get to work, there are options you can pursue. A bankruptcy attorney can help you get your car back – and keep it – by filing for a Chapter 13 bankruptcy. Plus, your financial outlook for your car payments will be better after filing. In a bankruptcy, you are generally allowed to reduce interest rates on a vehicle down to prime plus one to two percentage points. In some cases we can reduce the principal balance owed on the vehicle to the value of the car and adjust the interest rate.

How Does Bankruptcy Help Me Get My Car Back?

When you pursue Chapter 13 bankruptcy, you are agreeing to a financial plan that will help clear your debts, repay pay some debts, or a combination of both. Bankruptcy immediately stops your creditors, including car financing companies, from taking your belongings while the bankruptcy process is in place. Seize your chance to step in and demand the return of the car, as long as it hasn’t been sold at auction. Act fast. You’re within your rights, so work with a lawyer to make it happen swiftly.

Can the Financer Refuse to Return My Vehicle?

If the financing company refuses to release your car after you have filed for bankruptcy, call your attorney at once. Under a ruling by the Seventh Circuit Court of Appeals called In re Thompson, a creditor cannot maintain control of your vehicle after you file for bankruptcy or they are failing to comply with the automatic stay. The automatic stay is the bankruptcy rule that says creditors must stop pursuing collections against you for a specified period of time. Use the power of the law. Get the legal help that you need to get your car back now.

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 or send an email for a free consultation. We are ready to help.

Video Transcript

Has your car just been repossessed? It seems like almost everyday I turn around, I’m getting that phone call with that panic in the voice, the person upset on the other line. “How am I gonna get to and from work, now that they’ve taken my car?”

First thing, take a breath. There are steps that we can take to help you, not only get your car back, but help you keep it. In a bankruptcy proceeding, Chapter 7 or Chapter 13, we can look at forcing the vehicle to be returned.

Specifically, in a Ch. 13, if you wish to keep the collateral, we have the right to not only step in and force the return of the vehicle, pursuant to a set of circuit opinions called Henry Thompson. We can make them return the car to you as long as that car has not been sold at auction.

We can then look at changing that contract down to potentially just the fair market value of the vehicle, and look at reducing the interest factor. In a bankruptcy, we are allowed to reduce interests rates on a vehicle, down to prime plus 1 to 2 percentage points based upon what’s considered the risk factor of the loan.

So, if you wish to keep your vehicle, and it’s important to you, and you need that transportation to and from work, please give us a call. We’d like to help you, and get that vehicle back, so you can maintain your job, and get to and from work.

The post How Does Bankruptcy Help with Vehicle Repossessions? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Are Multiple Bankruptcies Even Allowed?

Yes, you can file more than once – once a waiting period after your first bankruptcy is over. In 2005, changes to the Bankruptcy Code established new rules about wait times that apply to anyone who has had a bankruptcy discharged before. For example, with Chapter 7 bankruptcy, you usually need to wait eight years before filing a Chapter 7 again. If you receive a Chapter 13 discharge you become eligible to file a Chapter 7 six years from the filing date. You are eligible to file a Chapter 13 immediately after a Chapter 7 discharge. However, you are not discharge eligible in that Chapter 13 unless four years have passed from the Chapter 7 filing date.

Are There Any Drawbacks to Filing More Than Once?

The obvious issue is that the subsequent bankruptcy has an effect on your credit rating. The bankruptcy could also remain on your credit report for up to 10 years and affect your ability to secure loans. However, the potential drawbacks depend on your specific situation. Consult with a bankruptcy attorney to be sure.

Can I File for Bankruptcy Again if My First Bankruptcy Is Dismissed?

Sometimes a bankruptcy case is dismissed, especially in Chapter 13 reorganizations. This usually occurs because of a change to the filer’s financial situation – like losing job or unexpected expenses that make it hard to keep up with Chapter 13 Plan payments. A past dismissal usually doesn’t affect your ability to file again. If your first case is dismissed simply because of a change in your financial situation, a waiting period doesn’t apply. If your bankruptcy is dismissed for not following the court’s instructions the Court sometimes imposes a bar to refiling a case for a time certain. If this happens, you need to wait the required time period before filing again. The worst case scenario is when a bankruptcy court dismisses your case with prejudice and bars you from ever filing again. However, this is very rare.

How Should I Move Forward With Filing for Another Bankruptcy?

Filing for bankruptcy once can be complicated enough; filing successive times can be even more complex. You may have stacks of paperwork or a tricky financial situation that’s difficult to explain. Perhaps your spouse is also declaring bankruptcy. No matter your situation, the best course of action is to consult a bankruptcy attorney who can examine your total financial picture and provide guidance on your best path forward.

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 or send an email for a free consultation. We are ready to help.

The post Can You File for Bankruptcy More Than Once? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

More than $1.5 trillion in student loan debt is currently owed in the U.S. by a total of more than 44 million people. Unfortunately, many of those people are unable to pay back their debt, and the student loan companies have no choice but to come after the co-signers on the loans: parents. Just as many parents are finally beginning to pay off their own loans and look toward retirement, suddenly a student loan company is hounding them for payment. What can you do if you find yourself in this situation? First, it’s important to know all the details involved and see what exactly you can and can’t be held accountable for.

Will I Be Forced to Pay Back My Child’s Student Loans?

Whether or not you can be forced to make payments on your child’s student loans depends primarily on one important factor: Whether you signed an agreement. Did you co-sign on a private loan or take out a federal Parent Direct PLUS Loan? If the answer is no – you never put your signature on any paperwork and never agreed to take on the debt – no loan company can come after you for the money later. If you did put your signature on the paperwork, it means at some point you agreed to be held accountable for the debt if your child defaults on payment. You hope to never be in this situation, but now you are.

What If I Can’t Afford the Payments?

The student loan company will start by trying to reach you by phone or mail. If you don’t respond and fail to make any payments, they will escalate their efforts until it becomes quite intense. The loan company can turn you over to a collection agency, threaten to sue you, harm your credit and prevent you from getting another loan. Eventually, you may have your wages garnished. If you protest paying because you can’t afford it, you’ll have to prove that you can’t possibly pay – and this is very difficult to do. In 1976, Congress made a rule that federally backed student loans couldn’t be erased in bankruptcy without proving undue hardship, but they leave it up to the courts to define what that means. In 2005, Congress passed bankruptcy law reform laws that stated that all loans made for an educational benefit are not dischargeable.

How Do I Prove That I Can’t Pay Due to Hardship?

To prove hardship, you’ll need to pass one of the two tests courts use to define undue hardship – either the Brunner Test or the “certainty of hopelessness” rule. The Brunner Test looks at factors like poverty, your financial future and your good faith efforts to pay. For certainty of hopelessness, they look at issues like disability, life challenges and depth of poverty. Still, these hardships are extremely difficult to prove to the court. There have been numerous cases where someone is hundreds of thousands of dollars in debt, making less than $20,000 a year, barely able to get by and still are not released from student loan debt.

Can I Avoid Paying the Student Loan Company By Filing for Bankruptcy?

Although bankruptcy isn’t usually a direct path to eliminating student loan debt, it can still be a smart choice. Bankruptcy reduces or erases other debts, like credit card balances and medical bills, so you can afford to make the monthly student loan payments. This comes as a huge relief to older adults who are struggling to pay on their children’s educational debts. It means you can clear up the debt as quickly as possible, while you are still in your working years, and be able to look forward to a happy and comfortable retirement someday.

Chapter 13 bankruptcy can also keep the student loan creditors at bay for a period of years. It, in effect, acts as a multi-year deferral. The loans will still be there at the end of the case, however.

If you’re facing debt from your child’s student loans, consult with a bankruptcy attorney who can help protect your financial future.

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 or send an email for a free consultation. We are ready to help.

The post Can Parents Be Held Responsible for Children’s Student Loans? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.