Chapter 13 Bankruptcy Basics

Chapter 13 is a reorganization of debt. It allows individuals to manage different types of debt in ONE manageable payment. It also allows individuals to create a structured repayment plan to catch up on delinquent payments to prevent a repossession or to prevent foreclosure or stop a foreclosure that has been filed.

When Would I Need To File For Chapter 13 Bankruptcy?

There are a lot of different instances when you may need to file Chapter 13 bankruptcy. Every person is different. We review cases individually to give the best possible advice; however, a Chapter 13 bankruptcy may help if:

  • You already filed a Chapter 7 bankruptcy within the last eight years but are still having financial challenges you need to address.
  • You are behind on your home loan and your loan modification request has been denied or a foreclosure has been filed against you.
  • You are behind on homeowners association fees and/or property taxes.
  • You are behind on your car payment and you need to stop repossession of your car (or need to reduce high interest on your car loan).
  • You owe state or federal tax debt.

How Can Chapter 13 Help Me?

A Chapter 13 bankruptcy allows for repayment of certain debts that are not dischargeable under Chapter 7 bankruptcy. It allows you to catch up on payments to creditors you WANT to pay (your mortgage lender, car creditors, tax authorities, etc). You can obtain a debt relief plan to address a mortgage, car loan and/or tax situation while STILL managing credit card, medical and other debt at the same time.

Do you have questions about Chapter 13 bankruptcy? Do not trust everything you read on the internet, get tailored advice from a bankruptcy attorney and learn what is truth and what is myth.

Take The First Step | Contact Moreno & Villarrubia LLP

Our lawyers have more than nine years of experience handling 100 percent bankruptcy matters. You can count on personal, friendly and efficient service along with affordable fees and payment plans.

Send us an email or call our Indianapolis offices at 317-822-9900 to get your free initial consultation. We offer weeknight and weekend appointments by request.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.