Fort Wayne Attorney Guides Debtors Through Chapter 13 Bankruptcy

Reputable lawyer provides detailed advice for Indianans seeking a fresh financial start

For too many Americans, severe financial hardship is only one or two missed paychecks away. A long-term illness, a failed investment, a business reversal, or lengthy unemployment can put virtually anyone on the brink of bankruptcy. If you’re there now, struggling with debts you fear you’ll never be able to repay, it’s time to talk to a trustworthy attorney about the benefits of bankruptcy. For forthright advice focused on what’s best for you and your family, Patterson Law LLC in Fort Wayne is the law firm to see. If you’re employed, earning more than the median income for a household your size, and want to hold onto your home, Chapter 13 bankruptcy may be the answer.

What is Chapter 13 bankruptcy?

Chapter 13 is the section of the bankruptcy code that allows individuals to repay part of what they owe over time and have the rest of their eligible debt discharged. When you meet with us to discuss your current financial situation, we take an inventory of your creditors, amounts owed and debts that are dischargeable in bankruptcy. If you have reliable, regular income but are earning too much to qualify for Chapter 7 bankruptcy, we then look at the equity you have in secured assets, such as your home and auto, to see if those amounts exceed the exemption limits. Then we explain whether Chapter 13 bankruptcy would be to your advantage.

How does the Chapter 13 process work?

If you decide to go ahead with the process for filing Chapter 13 bankruptcy protection, here’s what you can expect to happen:

• Automatic stay — Once you pay filing fees, you get an automatic stay, which prohibits creditors from attempting to collect on your debts. That means no foreclosure on your home and no repossession of your car.
• Plan of reorganization — We help you put together a proposed repayment plan, called the Plan of Reorganization, based on your monthly disposable income. Your plan will last from three to five years, depending on your income and other factors.
• Creditor meeting — After we submit the plan to the bankruptcy trustee, the trustee calls a 341 creditor meeting, where those you owe money to can express their concerns with your bankruptcy filing. In most cases, it’s a mere formality. Those creditors then have a window of opportunity to make a formal claim with the bankruptcy court.
• Trustee recommendation and approval — After the 341 meeting, the trustee decides whether to recommend your plan to the court. There may be some negotiation about the amount of your monthly payment and the length of your plan. If the trustee approves, you begin paying on the plan.
• Discharge of debts —The trustee receives your payments and distributes funds to your creditors. At the end of the plan period, if you have faithfully made payments, the bankruptcy judge discharges your remaining eligible debt.

We will provide you with seasoned advice and determined advocacy through each step of the process.

Proven lawyer advises on shedding a second mortgage through Chapter 13

Chapter 13 is a great tool for disposing of a second home mortgage. If you’re “underwater,” meaning your property has declined in value and you now owe more than it’s worth on the market, the bankruptcy court treats part or all of that second mortgage as an unsecured loan. The lender gets partial payments during your repayment plan period, but at the end of your plan, the bankruptcy court discharges that debt, so you no longer have to repay it.

Contact a trustworthy Indiana attorney for a Chapter 13 bankruptcy consultation

Patterson Law LLC in Fort Wayne helps Indiana clients with overwhelming debt get a fresh start through Chapter 13 bankruptcy. To schedule a consultation, please call 260-247-8383 or contact us online.