If you have decided that you need to file for bankruptcy, you need to partner with an attorney to begin the process. He or she can give you the advice you need to make sure that the process is handled properly. If your income is substantial or you have a large amount of secured debt, Chapter 13 bankruptcy offers a repayment plan that is workable.
How Chapter 13 Works
When you work with a bankruptcy law firm, you can find out more about the steps you need to take in order to file for Chapter 13 bankruptcy. Under this type of bankruptcy filing, a three- to five-year repayment plan is proposed so that you can pay off some or all of your obligations to your creditors. This repayment plan is based on proceeds from your future earnings.
A bankruptcy law firm can assist you with the Chapter 13 process so that you can prevent foreclosure on your home or make up past-due car or mortgage payments. This type of bankruptcy filing can also assist you in paying back taxes or preventing interest from building up on your current tax debt. It is also instituted so that you can keep valuable property that is considered non-exempt.
A Realizable Way to Get Out of Debt
According to bankruptcy law firm professionals, anyone who follows the terms of a Chapter 13 repayment plan will see their dischargeable debt released at the conclusion of the plan. The amount that needs to be repaid is based on several criteria, including the individual’s disposable income and the total amount that is due to creditors.
In Indiana, legal professionals at such firms as Fred Wehrwein, P.C. state that a debtor’s disposable income is determined by a means test. This type of test clarifies the debtor’s financial position and is helpful in determining the terms of repayment. Chapter 13 is typically used by debtors who wish to keep their secured assets, such as an auto or home. As a result, this form of bankruptcy is also known as a reorganization. You can compare this to a Chapter 7 bankruptcy, which is called a liquidation. You can also connect them on Facebook.