INDIANA BANKRUPTCY BASICS: CHAPTER 7
Indiana residents who qualify for Chapter 7 bankruptcy have very little income to pay monthly toward their unsecured debts such as credit cards, medical bills, personal loans, pay-day loans, and judgments. By filing Chapter 7 bankruptcy, you can eliminate all of those debts. Chapter 7 Bankruptcy is also known as liquidation bankruptcy.
BENEFITS OF CHAPTER 7 BANKRUPTCY
Filing a Chapter 7 Bankruptcy in Indiana can be very beneficial.
- ALL YOUR DEBTS ARE ALMOST INSTANTLY ELIMINATED except for only a few exceptions such as student loans and certain tax debts
- It is generally faster to complete a Chapter 7 Bankruptcy. The typical Chapter 7 Bankruptcy filed in Indiana is over in just 3-5 months, but a Chapter 13 bankruptcy filed in Indiana involves making payments to the Bankruptcy Trustee for a period of 3-5 years.
- By filing Chapter 7 Bankruptcy, this could mean that you will get out of debt faster and you will be about to re-establish your finances and budget. You can put the past behind you and get a “fresh start.”
- In the majority of cases, YOU CAN KEEP EVERYTHING YOU OWN, including your house and your cars.
THE CHAPTER 7 BANKRUPTCY PROCESS
Our Central Indiana clients many times have anxiety about the Indiana bankruptcy process. At our office, the first step of the Chapter 7 Bankruptcy Process begins with a free initial consultation with Indiana Bankruptcy Attorney John Bymaster. In that meeting, John will review your financial situation and discuss all of the solutions, and he will assist you in determining which solution is best for you. If you choose to file a Chapter 7 Bankruptcy, we will begin to work together to prepare your bankruptcy petition. Once we have completed the petition, then John will file your bankruptcy.
After filing your bankruptcy petition, you will receive a document in the mail notifying you to attend a bankruptcy meeting at the Federal Courthouse called at “341 hearing.” Although the meeting is located in the courthouse, it is not located in a courtroom. The meeting of creditors is run by the Trustee that has been assigned to your case and any of your creditors can attend this meeting. It is likely that none of your creditors will show up at the meeting. Be rested assured that Attorney John Bymaster will be by your side at this meeting. This meeting is usually very brief, because eight different cases are scheduled for the same hour.
At the end of a Chapter 7 bankruptcy, your dischargeable debts will be eliminated and you will be out of bankruptcy – this includes almost all forms of debt except for limited exceptions such as student loan debt or certain tax debts.
INDIANA BANKRUPTCY BASICS: CHAPTER 13
Chapter 13 Bankruptcy is also known as debt consolidation or reorganization and it provides you the opportunity to combine your credit card debts, personal loan debts, and medical debts into one monthly payment for a period of 3-5 years. You can many times also stop foreclosure or other aggressive collection and then “reorganize” your mortgage or loans to a new payment that ALL the creditors are forced to take. It is a POWERFUL reorganization tool.
In Indiana Chapter 13 is available to almost anyone including those who do not qualify for Chapter 7. You only need a form of INCOME (as a “regular wage earner”).
BENEFITS OF FILING CHAPTER 13
There are several advantages to filing Chapter 13 in Indiana.
- If you are behind on your house payments, you will get up to 60 months to get up-to-date on past due payments. This can be very helpful if you are being threatened with foreclosure or a sheriff sale.
- If you are trying to stop repossession, you can include the car payments in the Chapter 13 plan. That can give you 60 months to pay off the balance of the car loan so that can assist you in avoiding repossession.
- It will allow you to keep all of your property. Although there are exemptions in bankruptcy that allow you to keep certain property, sometime assets can be non-exempt and you can lose those items in Chapter 7 Bankruptcy. However, filing Chapter 13 bankruptcy can allow you to keep everything that you own.
- You can repay any past taxes or child support that you owe over a period of 3-5 years.
THE CHAPTER 13 BANKRUPTCY PROCESS
At our office, the process for Chapter 13 bankruptcy beings with a free initial consultation with John Bymaster where you will review your financial situation. Indiana Bankruptcy Attorney John Bymaster will discuss options for your situation. Together you can determine the best option and develop a plan. If you decide to pursue Chapter 13 Bankruptcy, John Bymaster and his team will work with you to prepare your consolidation or reorganization plan that determines how you can pay back your unsecured debt over a 3-5 year period.
When filing a Chapter 13 Bankruptcy, it is very important to begin paying on your Chapter 13 plan right away. The first payment will be due 30 days after you have filed your Chapter 13 Bankruptcy. You are responsible for making the monthly payments according to the Chapter 13 plan. You can have the payment deducted from your paycheck or you can make the payment directly to your Trustee.
You will also be required to attend a meeting of creditors which is held about 30-40 days after you file your Indiana Chapter 13 Bankruptcy. This meeting will be held at the Federal Courthouse. Although it is held in the courthouse, it will not be held in a courtroom. The meeting is led by the Trustee assigned to your case and your creditors are allowed to attend. It is likely that none of your creditors will show up. As your Indianapolis Bankruptcy Attorney, John Bymaster will be by your side during this meeting. The meeting is very brief and usually last less than 15 minutes.
