Indiana residents like you who are suffering under debt will also likely be looking for ways to dig yourself back out again. Miller Flannery Law is here to help lay down a few different possible options. Today, we’ll take a look at Chapter 13 bankruptcy.
This type of bankruptcy is also called “debt reorganization”. Unlike Chapter 7 bankruptcy, which essentially allows you to wipe away debt in exchange for the liquidation of assets, Chapter 13 bankruptcy is designed to allow you to make a debt repayment plan instead.
Essentially, you will work with attorneys and creditors to create a new payment plan. You will still be paying back the same amount as before in most cases, but it will be spread out over a longer period of time or divided into payments that are more manageable for you. Sometimes, you can negotiate lower debts or interest rates.
One big benefit of Chapter 13 over Chapter 7 is that you don’t have to liquidate any assets, meaning you can keep your car, home, and valuables. However, the same risks still exist in that your credit score will be damaged, you may have trouble being approved for a mortgage, and you will be spending most if not all of your disposable income on debt repayment.
If you have found yourself tangled up in debt-related issues that you can’t seem to dig yourself out of, take a look at our web page on relieving your debt. In addition to Chapter 13 bankruptcy, you can also take a look at Chapter 7 and decide which option is best for you from there.