Chapter 13 Bankruptcy

Indiana Chapter 13 Bankruptcy Lawyers

At Redman Ludwig, P.C., our bankruptcy attorneys have been helping the people of Central Indiana — individuals, families, and business owners alike — find solutions to difficult financial problems for more than 27 years. And while our clients over the years have always had many questions to ask and misconceptions that needed to be addressed — the much-hyped, recent changes to the U.S. Bankruptcy Code have created more of them than ever before

The Major Myth about Chapter 13 Bankruptcy

The major misconception people have about Chapter 13 is that they will still have to pay all of their debts off AND suffer the credit consequences of a personal bankruptcy. In reality, it is far more likely that you will pay off only a portion of what you owe based on available funds after a reasonable normal monthly budget and allowable living expenses are taken into account for your size of household. Put more simply, you will pay what you can afford to pay while still maintaining a reasonable standard of living.

The Benefits of Chapter 13

While bankruptcy alternatives such as unsecured debt consolidation loans or debt settlement agreements can be useful if you are dealing primarily with credit card debt — Chapter 13 is a far more versatile solution for most people. A Chapter 13 bankruptcy is the best option for people who want to save their home or car, but who are behind on payments and cannot immediately make good on those debts and continue making regularly scheduled payments as well. Chapter 13 gives you time to make up any back payments and allows you to keep the home or car in your possession.

Other advantages of Chapter 13 include:

• Repayment plans, typically 36-60 months in length, are modifiable. If you become ill, lose a job, or have something else happen that affects your ability to meet payment obligations, you can seek to have the plan altered to reflect that.
• Interest and penalties on non-dischargeable tax debt will stop accruing once you file
• Debts assumed as part of a divorce can be disposed of in Chapter 13 bankruptcies
• Car loans can be modified in certain circumstances
• Co-signers can be protected so long as you continue to make your regularly scheduled loan payments
• Non-exempt property can be kept so long as you continue to make your regularly scheduled payments

Central Indiana Bankruptcy Solutions — Toll Free 1-866-755-0811

For answers to other questions you have about the Chapter 13 bankruptcy process — call our lawyers in Indianapolis or reach us online by completing the brief form located on the contact us page of this Web site. We offer reasonable payment plans and will deduct initial consultation costs from your fee should you decide to retain us.

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