Crown Point Chapter 13 Bankruptcy Lawyer
Individuals across the nation have found themselves struggling with overwhelming debt. Perhaps you are facing foreclosure on your home, repossession of your car, or receiving multiple letters and phone calls from debt collectors. Maybe you’ve realized that your debts have grown far beyond your ability to repay them. You should know that there are options to get a fresh financial start. One of those options is Chapter 13 bankruptcy.
Why Would You Want to File a Chapter 13?
1. You aren’t eligible for a Chapter 7. You fail the means test, or have too much disposable income to qualify for a Chapter 7. Or you might have filed a Chapter 7 case in which you received a discharge within the last eight years. None of these are problems in a Chapter 13
2. You are behind on your mortgage and need time to catch up. A Chapter 13 gives you up to five years to spread these payments out to bring the mortgage current, without interest.
3. You owe more on the first mortgage on your home than it’s worth, and have a second or third mortgage. A Chapter 13 lets you “strip off,” or wipe out, wholly unsecured second and third mortgages.
4. You’re behind on your tax or domestic support payments and need time to catch up. A Chapter 13 gives you up to five years to spread these payments out to bring them current.
5. You owe a domestic support property distribution and want to discharge it. A Chapter 13 “super discharge” allows you to do this.
At Adam D. Decker, Attorney at Law, P.C., we represent individuals in consumer bankruptcy matters, including Chapter 7 and Chapter 13 bankruptcy throughout the northwest Indiana region. If you are experiencing financial hardships, we encourage you to speak with a bankruptcy lawyer about your situation.
Is Chapter 13 Right for Me?
Chapter 13 may be a good solution for people who need time to pay off certain debts and who have sufficient income to meet the Chapter 13 requirements. When you file for Chapter 13, you must submit a repayment plan. This plan must demonstrate that you can pay your mandatory debts, such as your mortgage, car loan, taxes and domestic support obligations, and perhaps repay all or a portion of your other debts, within a three (3) or five (5) year repayment period.
Some of you won’t have a choice between Chapter 7 and Chapter 13 bankruptcy. If your average monthly income during the six (6) months before you file for bankruptcy is higher than the median income in the State of Indiana based on the size of your household, the “means test” may not allow you to use Chapter 7 if your disposable income would allow you to pay your unsecured creditors. In that case, if you want to file for bankruptcy, you will have to use Chapter 13 and repay some of your debt. In Chapter 13, you are permitted to keep all of your property, regardless of its value. However, you will have to pay your unsecured creditors (those to whom you owe credit card debts, medical debts, and most court judgments, for example) the value of the property you would lose if you filed for Chapter 7 bankruptcy.
If you are facing foreclosure on your home, Chapter 13 provides a powerful remedy. You can keep your home by proposing a feasible repayment plan that includes your missed payments, as long as you stay current on your mortgage.
Chapter 13 may be right for you if:
- You have a regular source of income, i.e. you are employed or receive Social Security benefits
- You have fallen behind on your mortgage or car loan payment and want to save your home or car
- You do not qualify for Chapter 7 because your income exceeds certain minimums under the “means test” or you have filed for bankruptcy within the past 8 years
Foreclosure Prevention With Chapter 13
Many of our clients are facing foreclosure in the near future and want to keep their home. Filing a Chapter 13 bankruptcy will stop the foreclosure, even if a foreclosure lawsuit has been filed and the property is scheuled for sheriff’s sale. When you file for Chapter 13 bankruptcy, the bankruptcy court automatically issues an order preventing most creditors (with some exceptions) from taking action to collect a debt against you or your property, including foreclosure sale of your home. As part of your Chapter 13 repayment plan, you will have the opportunity to get caught up on your payments and have the breathing room you need to get back on your feet. If you have fallen behind on your mortgage payments and want to keep your home, Chapter 13 may offer the best solution.
Making a Decision That Gives Your Family a Fresh Start
Before an attorney can advise an individual on whether or not bankruptcy is an option, it is necessary for the person to truthfully disclose their financial circumstances. At our law firm, we begin this process by providing a prospective bankruptcy client with our bankruptcy worksheet and ask that it be completed and returned to our office. This worksheet helps us get a basic understanding of your bills, employment, mortgage payments and other debts. Once we have a clear understanding of your financial situation, we can make certain you have the legal information necessary to make an informed decision about your situation. See our Chapter 13 bankruptcy FAQ page for more details and answers to commonly asked questions.
Contact Our Lake County Repayment Plan Attorney
We offer free initial consultations in bankruptcy matters. Please feel free to contact our Crown Point Chapter 13 bankruptcy attorney online, or by calling 219-306-4837 or 888-497-5102.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.