How Chapter 13 Bankruptcy Works

What Chapter 13 Bankruptcy Entails

Chapter 13 Attorney

While Chapter 7 bankruptcy is set on the total ilimination of debt, Chapter 13 bankruptcy is a debt repayment or management plan. It creates an opportunity for debtors to repay their outstanding debts, or at least part of it. Upon qualifying for a Chapter 13 bankruptcy, you will be granted a period of 3 or 5 years to pay installments to your creditors, depending on your ability to pay. Once this period has been met and provided you have not missed a payment, the balance of your debt will be cleared.


Get the Legal Help that You Deserve

Call us for your free first consultation. Our experienced Indianapolis bankruptcy attorneys possess the necessary knowledge and skill required to assist you. We have assisted numerous clients through the Chapter 13 bankruptcy process.

Some of the complexities in Chapter 13 bankruptcy include:

  • Repayment Plan: We will assist you in the presentation of a repayment plan. This plan will be derived from your income and expenses as required by the bankruptcy means test. The plan also includes information on how your payments are to be distributed. The bankruptcy judge has to approve the plan, so it should cover your debts extensively while balancing a payment plan you can afford.
  • Confirmation hearing: The plan and confirmation hearing is key to the Chapter 13 process. During the confirmation hearing, the judge will scrutinize the suggested repayment plan. Creditors possess the right to object to such suggested repayment plan, although it seldom happens. Should a creditor oppose the repayment plan, the judge will listen to the objections of the creditor and thereafter make his decision to deny or approve your plan. Approval of your plan is the confirmation.
  • Repayment period: If the judge confirmed your plan, the repayment term will be either 3 or 5 years. It is of utmost importance that you keep up with concurrent repayments in the proposed amount for the total repayment term.
  • Discharge: If you did not miss a payment and met your plan requirements, the balance of your debt will be absolved.

If you are in urgent need of an Indianapolis debt-relief lawyer for assistance in gaining financial stability, please contact either our Indianapolis or Columbus law office. Do not hesitate to contact us online. We offer you comprehensive advice regarding our services. You can rest assured that your first consultation is free.




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