If you have been determined to be eligible for a Chapter 13 bankruptcy and are in a tough financial situation then this may be the most a viable solution for you to get on your financial feat once again.
While most people think that going with a Chapter 7 bankruptcy is a better solution it is soon discovered that during the Chapter 13 that you may be able to keep a lot of your assets that you may not have been able to do so in a Chapter 7.
Chapter 13 Considerations
What will happen in the Chapter 13 bankruptcy is that you will be able to spread out your payments and it will give you a chance to catch up on any past due payments that you have fallen in arrears over. It is true that a Chapter 13 bankruptcy does go on for much longer than a Chapter 7 but this time is needed to allow you to become financially stable once again with your bill paying.
Normally it will take 3 to 5 years to catch up on accounts that have gone into arrears and during the process of your bankruptcy you will compile a repayment plan that will allow you to meet your financial obligations.
This form of bankruptcy takes a great deal of stress off of the individual that is in financial difficulty. Once everything has been settled then the debtor only has to make one monthly payment which is made to the bankruptcy trustee. This trustee then distributes the money received to the various creditors that have been agreed upon being paid in the bankruptcy action. This means that the debtor does not have to have any direct contact with their creditors during the period of time that they are in theIndiana bankruptcy.
Another potential a benefit of the Chapter 13 bankruptcy is that any cosigners that signed for some of the debt may be protected.