Chapter 13 Bankruptcy Attorney in Speedway

A Repayment Plan Can Create Time to Address Debt Without Giving Up Every Asset

Falling behind does not always mean your only choices are paying everything immediately or losing property. Chapter 13 can give eligible individuals with regular income time to address debt through a court-supervised repayment plan while working to retain property that matters to them.

At Jackson & Oglesby Law LLC, we represent Speedway residents considering Chapter 13 bankruptcy and other forms of consumer debt relief. We review income, monthly expenses, secured and unsecured debts, property, collection activity, prior filings, and financial goals before discussing whether Chapter 13 may fit.

Michael L. Jackson and Dana L. Oglesby have practiced since 2008 and bring more than 30 years of combined bankruptcy experience. Our attorneys regularly appear in the United States Bankruptcy Court for the Southern District of Indiana.More Than 30 Years of Bankruptcy Experience

How a Chapter 13 Repayment Plan Works

Chapter 13 allows an eligible individual with regular income to propose a plan for paying all or part of qualifying debts over time.

Most Chapter 13 plans last three to five years. The applicable period depends in part on household income and the requirements imposed by federal bankruptcy law.

A Chapter 13 plan can provide different treatment for different kinds of debt. Some obligations must be paid in full, while unsecured creditors do not necessarily receive full payment in every case. The proposed plan must satisfy federal confirmation requirements and be approved by the bankruptcy court.

Payments generally begin shortly after the case is filed, even before the court has formally confirmed the plan. The Chapter 13 trustee receives plan payments and distributes funds to creditors according to the terms of the case.

Whether a plan is workable depends on the debtor's income, living expenses, debt obligations, property, arrears, and ability to maintain required payments.

Can Chapter 13 Help You Keep a Home or Vehicle?

Chapter 13 is often considered by people who have regular income but need time to address past-due secured debt.

For an eligible homeowner, a Chapter 13 plan may provide a way to address mortgage arrears over time while continuing required post-filing mortgage payments. Timing matters if a foreclosure or sheriff's sale is already underway because rights can change once property has been sold.

Vehicle loans can also raise Chapter 13 issues involving arrears, ongoing payments, the value of the vehicle, the timing of the loan, and other facts specific to the case.

Chapter 13 does not guarantee that every property can or should be retained. We review the payment obligations and the client's broader budget to determine whether keeping an asset is financially and legally realistic.

How Filing May Affect Garnishments, Lawsuits & Collection Activity

Filing a bankruptcy petition generally triggers the automatic stay, a federal protection that pauses many collection actions.

Depending on the circumstances, the stay may affect creditor calls, collection lawsuits, wage garnishments, foreclosure proceedings, repossession efforts, and other collection activity.

The automatic stay has exceptions and limitations. Its duration can also be affected by prior bankruptcy filings, and creditors may ask the court for permission to continue certain actions.

For that reason, someone facing an imminent foreclosure, garnishment, repossession, or sheriff's sale should have the timing reviewed rather than assume that filing at any point will produce the same result.