Filing Chapter 13 Bankruptcy in Terre Haute
Chapter 13 bankruptcy is a legal process that permits individuals to reorganize their debts and establish a repayment plan to satisfy creditors over three to five years. It aims to enable debtors to retain their assets while repaying their debts in an affordable manner.
Unlike Chapter 7 bankruptcy, which involves liquidation of assets, Chapter 13 allows debtors to retain their properties and catch up on missed payments, providing a viable path towards financial stability.
Advantages of Chapter 13
As individuals navigate the complexities of Chapter 13 bankruptcy, they may discover several distinct advantages that make this legal process an appealing option for debt relief.
One significant advantage is the ability to keep their property and assets while still repaying their creditors over a manageable period.
Additionally, Chapter 13 provides the opportunity to catch up on missed mortgage or car payments, preventing foreclosure or repossession.
This chapter also offers a co-debtor stay, protecting co-signers from collection actions.
Chapter 13 Bankruptcy Eligibility
To be eligible for Chapter 13 bankruptcy, individuals must meet certain criteria established by federal law. These criteria include having a regular income that enables them to make monthly payments to their creditors, as well as having debts within the limits set by the bankruptcy code.
Additionally, individuals mustn’t have received a Chapter 7 bankruptcy discharge within the past four years or a Chapter 13 discharge within the past two years. Meeting these eligibility requirements is crucial for individuals seeking the benefits of Chapter 13 bankruptcy.
How does Chapter 13 work?
After establishing eligibility for Chapter 13 bankruptcy, individuals can proceed to understand how this type of bankruptcy works and the benefits it can provide.
Chapter 13 bankruptcy allows individuals to create a repayment plan to pay off their debts over a three to five-year period. This plan is based on the individual’s income and expenses, and it allows them to keep their assets while making affordable monthly payments.
Chapter 13 bankruptcy also provides protection from creditors and stops foreclosure or repossession actions.
The Chapter 13 Plan and Confirmation Hearing
During the Chapter 13 bankruptcy process, individuals will be required to create a detailed repayment plan and attend a confirmation hearing.
The Chapter 13 plan is a crucial part of the process as it outlines how the debtor intends to repay their debts over a period of three to five years. The plan must be feasible and propose reasonable payments to creditors.
At the confirmation hearing, the bankruptcy trustee and creditors will review the plan and determine its approval.
The Chapter 13 Bankruptcy Discharge
The Chapter 13 bankruptcy discharge is the final step in the process, providing the debtor with relief from their remaining debts. Once the debtor has successfully completed their Chapter 13 repayment plan, the court will issue a discharge order.
This discharge releases the debtor from the legal obligation to repay the debts included in the plan. However, certain debts may not be discharged, such as child support, alimony, and certain tax debts.
The Chapter 13 Bankruptcy Hardship Discharge
Upon successfully completing their Chapter 13 repayment plan, debtors may be eligible for a hardship discharge, providing them with relief from their remaining debts in certain exceptional circumstances. This discharge is granted when debtors experience significant financial hardship that’s beyond their control.
The three exceptional circumstances where a hardship discharge may be granted include:
- Debtor’s inability to complete the repayment plan due to circumstances beyond their control
- Debtor’s failure to complete the plan due to circumstances for which they shouldn’t be held accountable
- The repayment plan’s failure to provide a feasible means for the debtor to meet their obligations.
Hiring a Chapter 13 Bankruptcy Lawyer
When going through the process of Chapter 13 bankruptcy, it’s crucial to have the guidance and expertise of a qualified attorney. Hiring a Chapter 13 bankruptcy lawyer ensures that you have someone on your side who understands the complexities of the law and can navigate the legal system on your behalf.
They can provide you with the necessary advice, support, and representation needed to achieve the best possible outcome for your financial situation.
Call Us Today for Assistance
If you’re considering filing for Chapter 13 bankruptcy in Terre Haute, hiring a knowledgeable and professional bankruptcy lawyer can provide you with the assistance you need. They can guide you through the complex legal process and ensure that your rights are protected.
When choosing a bankruptcy lawyer, consider the following:
- Experience: Look for a lawyer who specializes in bankruptcy law and has a proven track record of success.
- Communication: Find a lawyer who’ll keep you informed and answer your questions promptly.
- Personalized approach: Seek a lawyer who’ll tailor their strategy to your unique situation.
Get in touch with us today
Recognize the importance of choosing cost-effective yet high-quality services for filing Chapter 13 bankruptcy. Our expert team in Terre Haute is prepared to assist you with all aspects of the filing process, whether it involves comprehensive guidance or minor adjustments to enhance the effectiveness of your bankruptcy plan!