If your Indiana bankruptcy attorney has determined that it’s a Chapter 13 bankruptcy that you must apply for, then he will also explain the process and the probable outcome of this form of debt relief. In this case your debt is not going to be fully discharged. Instead a plan will be developed for the re-payment of what you owe. The good news is that your creditors cannot deviate from the plan and they have to accept the arrangements that have been made under this bankruptcy proceeding.
Following The Guidelines
For you, it is extremely important that you fully comply with the payment plan that is designed as a result of this bankruptcy action. If you don’t then your bankruptcy is going to be void, and your creditors can now once again come after you and take any legal action they can according to the law.
Some of your debts have to be fully paid under your plan. They take priority over all the rest of them. Usually these important debts are child support and alimony. They also include money that you may owe to employees, and some forms of tax debt.Secured debt basically takes on the next role of importance, but suitable payments on these will be arranged.
At the end of it, all those creditors that you owe money to but have no securities in place against you will received some payment if there is any money left over. This pertains to any disposable income you may have after meeting the rest of the plan obligations. Because the nature of a Chapter 13 bankruptcy can be more complex than a Chapter 7, it is important to stay in open communication with your attorney and ask questions. No amount of inquiry is too much when it comes to working towards a fresh financial start.