Indianapolis Bankruptcy Lawyers: Using Chapter 7 Or Chapter 13 To Restructure Debt
Contemplating bankruptcy can be overwhelming. If you are considering bankruptcy as an opportunity to restructure your personal or business debt, our Indianapolis bankruptcy lawyers can offer guidance and advice.
Trapp Law, LLC, was founded in 2011 by our lead attorney, Angie Trapp. All of the firm’s attorneys have extensive experience in various practice areas, including bankruptcy, family law and estate planning.
What Is Chapter 7 Bankruptcy?
A Chapter 7 bankruptcy filing, also known as “liquidation,” is allowed for (a) businesses and (b) individual debtors whose debts are primarily business debts or whose gross family income is below a certain level.
Chapter 7 bankruptcy allows a debtor to discharge most of the debtor’s unsecured debt in exchange for giving up his or her nonexempt assets. Due to the generous exemptions permitted by Indiana law, the vast majority of Chapter 7 cases are considered “no asset” cases, and debtors do not lose any property.
For “secured debts,” which are debts for which the creditor has a lien on property, such as car loans and home mortgages, debtors may elect, but are not obligated, to “reaffirm” the debt with the creditor and keep their property after the bankruptcy so long as the debtor is current on payments.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is also known as a “reorganization.” Chapter 13 bankruptcy is available only for individuals. It requires the individual to have a regular income to form a budget.
Filing for bankruptcy under Chapter 13 permits a debtor to pay back creditors over the course of 3-5 years, many times at a reduced rate. Upon completion of the plan, debtors receive a discharge.
Which Is Better? Filing For Bankruptcy Under Chapter 7 Or Chapter 13?
Many debtors who qualify for Chapter 7 elect to file Chapter 13 bankruptcy instead. Filing under Chapter 13 allows them to catch up on their past-due mortgage or car payments. In addition, certain debts, such as debts owed to an ex-spouse from a divorce settlement, which are not considered domestic support, may be discharged upon completion of a Chapter 13 plan, whereas such debts are not permitted to be discharged under Chapter 7.
Experienced Bankruptcy Lawyers Who Understand Families
An experienced bankruptcy attorney, like our firm’s founder, Angie Trapp, can help you understand your various options. A bankruptcy lawyer can assess your financial situation, work to understand your legal goals, and provide guidance and advice on what options are best for resetting your financial future.
In addition, our firm’s attorneys regularly work in a wide range of legal practice areas. Our family law attorneys help Indiana clients navigate divorce. But also serving as bankruptcy lawyers, they are well-versed in how a divorce can lead to bankruptcy meaning they are adept at helping clients understand the big picture of their legal situation.
Consult An Indiana Bankruptcy Lawyer For Free
At Trapp Law, LLC, our bankruptcy attorneys offer free, initial consultation appointments. If you are considering a bankruptcy filing, you can schedule your free appointment by calling 317-668-1230 or by reaching out to us through our website form.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.