It’s a smart choice to file for Chapter 13 bankruptcy. Your bankruptcy plan will allow you to catch up on payments and settle your debts while giving you a chance to keep your home treasured belongings.
If you have a job but you’re struggling to make your payments every month, Chapter 13 can help. In fact, the U.S. courts have nicknamed Chapter 13 bankruptcy the “wage earner’s plan.”
What Is A Chapter 13 Repayment Plan?
Chapter 13 is a personal reorganization bankruptcy. It stops creditors from pestering you and halts repossessions and foreclosures while you work on creating a repayment plan that’s reasonable for you to repay based on your income and assets. In a Chapter 13 you do not have to repay most debts in full. You’ll work with the bankruptcy court to create a manageable repayment plan that focuses on your most important bills. Debts like credit card bills and medical bills often can be eliminated after receiving just cents on the dollar, giving you some breathing room so you can become financially stable.
How Much Will I Have To Pay Each Month?
Every Chapter 13 repayment plan is unique and is based on your individual situation. A Chapter 13 plan can eliminate most unsecured debts and loans so you can take care of your crucial monthly costs like your mortgage, car payment and utilities. Generally speaking, your repayment plan will take into account how much you make per month at your job and help prevent your monthly bills from exceeding the amount of your pay.
How Long Does A Chapter 13 Bankruptcy Plan Take?
Chapter 13 bankruptcy typically takes three to five years to complete, which is longer than Chapter 7 bankruptcy, for example. However, you’ll start seeing the benefits of Chapter 13 bankruptcy right away. It stops creditors from calling and otherwise contacting you. It also eases your monthly financial burden so you can stop feeling so stressed about your debt.
Is Chapter 13 the Right Choice for Me?
If you have a steady source of income, but are dealing with missed payments, foreclosure, repossession, tax debt, medical bills, credit card bills or other types of debt that is becoming overwhelming, Chapter 13 could be a great choice. It helps protect your home and the stability of your family while you get your finances in order. Contact an Indiana bankruptcy attorney to discuss your situation and decide whether Chapter 13 is the best option. Your bankruptcy attorney can help you take advantage of exemptions and other benefits of bankruptcy so you can find a brighter future ahead.
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.