Chapter 13 Bankruptcy Information
For the vast majority of people who are looking for bankruptcy debt relief, Chapter 7 is the best option. But for many, and for various reasons, people wonder about Chapter 13 bankruptcy: How is the process different? How are the Chapter 13 eligibility requirements different from the Chapter 7 eligibility requirements? What are the advantages of Chapter 13 bankruptcy?
At Walton Legal Services, our Indiana Chapter 13 bankruptcy attorneys can help you determine whether Chapter 13 bankruptcy is the best choice for you. We will look at your financial situation to help you find the best debt-relief solution as efficiently as possible.
Walton Legal Services: More than 30 years | More than 30,000 bankruptcies filed
The Advantages of Chapter 13 Bankruptcy
Some of the most important benefits of Chapter 13 bankruptcy include:
- Retain eligibility with higher income levels: Even if you are not eligible for Chapter 7 bankruptcy, because you do not pass the bankruptcy means test (your income is too high), you are probably still eligible for bankruptcy through Chapter 13.
- Keep more of your assets: Because Chapter 13 is a three-year or five-year repayment and debt reorganization plan, it often gives people the chance to pay off some debts and keep more property than they would be able to keep in a Chapter 7 bankruptcy. This time could help you catch up on back payments on your first mortgage so that you can keep your home.
- The automatic stay: The automatic stay is a factor in both Chapter 13 and Chapter 7 bankruptcies. Creditors and their agents are forbidden to continue collections activities throughout the course of bankruptcy proceedings and permanently after the discharge.
- Tax issues: Some tax liabilities that cannot be discharged in Chapter 7 can be repaid in the Chapter 13 repayment period, without additional interest added or additional collections activities by collectors.
- Stripping off second mortgages: Chapter 13 allows people to strip off second mortgages. If your first mortgage is worth more than the value of your home, the second and subsequent mortgages are no longer liens against your home and are discharged also.
If you are looking for an Indianapolis debt-relief lawyer to help you find the road to financial freedom, call one of our Indianapolis law offices, call our Columbus, Indiana, office or contact us online. We offer free initial consultations, and we give you detailed up-front information about our fee arrangements, so there will be no surprises.
