Indianapolis Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a very useful tool in dealing with debts. There are several reasons why we may advise you to file under Chapter 13 bankruptcy. These are some of the factors we look at in determining if Chapter 13 is right for you:
- Income - If your income is too high to qualify for Chapter 7 bankruptcy, you likely have options under Chapter 13 bankruptcy. Chapter 13 allows you to pay a portion of your debts, depending on how much you can afford.
- Mortgage arrears - If you are behind on your mortgage payments, Chapter 13 bankruptcy can stop foreclosure. Chapter 13 bankruptcy forces your mortgage company to give you up to five years to catch up on your mortgage payments.
- Eliminating Second Mortgages - In some situations, it is possible to eliminate a second mortgage or Home Equity Line of Credit (HELOC) through Chapter 13 bankruptcy. The key to doing this is that you must owe more on your first mortgage than the value of your home
- Assets - If you own more assets than can be protected in Chapter 7 bankruptcy (not common), we can file under Chapter 13 bankruptcy and pay back some of your debt rather than having assets sold. This can be a great solution for someone with large amounts of home equity.
- Restructuring Secured Loans - Car loans, RV loans, and other secured debts can be restructured through Chapter 13 bankruptcy. We can usually reduce the interest rate on high rate loans to 4 or 5%. In some cases we can reduce your balance to the value of the item rather than the amount currently owed.
- Taxes and Student Loans - Although most taxes and student loans cannot be eliminated in bankruptcy, we can deal with these debts in Chapter 13 bankruptcy by restructuring the payments. Talk to our bankruptcy attorneys about the options given your specific circumstances. To serve our Indiana clients more effectively, we have an Indy bankruptcy law office as well as a Lafayette bankruptcy law office.