Anderson Bankruptcy Lawyer Uses Chapter 13 to Help Stop Foreclosure

January 22, 2012 9:12 pm Published by

Not everyone qualifies to file under chapter 13 bankruptcy law in Indiana. But, as points out, there are several reasons why people choose Chapter 13 over Chapter 7 when given the choice.  As for me, a debt consolidation lawyer toolsoffering Indiana bankruptcy help, whenever it’s important for a client to save a home and help stop foreclosure, I choose Chapter 13 bankruptcy as the perfect tool for the job.

Here are just a few of the situations when you as a debtor might opt for Chapter 13:

  • You think it’s the “right thing to do”, to make every attempt to pay your own debts – you just need more time.
  • You’re behind on your mortgage or car payments and need time to make up the missed payments without late fees and interest making that ever more impossible. This is one piece of bankruptcy information in Indiana I believe is so important to convey to consumers, and that’s why I keep coming back to this idea in these Bankruptcy in Indiana articles.
  • You have valuable pieces of property (could be a home or it could be other property that is not exempt under bankruptcy Chapter 7 in Indiana).
  • You filed a Chapter 7 within the past eight years.
  • You have a big federal tax debt.

All of the Columbus bankruptcy lawyers who are my colleagues, along with the Indiana bankruptcy attorneys who work in the Zuckerberg bankruptcy law offices in Indianapolis, Bloomington, and Anderson, Indiana use Chapter 13 to accomplish things that cannot be accomplished under bankruptcy Chapter 7 in Indiana.  Chapter 13 is sometimes referred to as the “bill consolidation: version of bankruptcy or the “wage earner’s bankruptcy plan”.  Under the new bankruptcy laws of Indiana, one of the main things that Chapter 13 accomplishes is saving homes. 

How does Chapter 13 help stop foreclosure? When you’re behind on house payments, sooner or later (unfortunately it’s usually sooner), your lender or mortgagor is going to take legal action to collect what you owe, or threaten to evict you from the house and take the property back.  If you can file individual bankruptcy in Indiana using Chapter 13 bankruptcy law, and if you do it prior to the sheriff’s sale of your home, the bankruptcy court can cancel your mortgage debt (this is particularly true of a second mortgage or home equity loan) or give you the opportunity to stop the foreclosure and make the missed back payments over time.

Can you see why, over my 25 years practicing Indiana bankruptcy law, I consider myself as part of the Chapter 13 home rescue squad?


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This post was written by Mark Zuckerberg

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