Chapter 13 bankruptcy in Plainfield imposes the stipulations outlined in the 2005 Bankruptcy Act. It requires that all claimants attend a credit-counseling course that is approved by the state of Indiana. This course educates the consumer about more effective ways to manage their finances and maintain up-to-date accounts.
Requirements for Chapter 13 Bankruptcy in Indiana
An attorney files a bankruptcy claim on behalf of the consumer after determining eligibility. The consumer qualifies through the means test initiated through the 2005 Bankruptcy Act. The eligibility guidelines for Chapter 13 Bankruptcy in Plainfield indicate that if the consumer’s income is above the median income for Hendricks County, he or she qualifies. The average income is $55,208 for individuals and $61,689 for couples.
Further verification for eligibility requires the consumer to provide two years worth of income tax returns, and an itemized statement of all household income. The attorney needs any mortgage documents for properties that are financed for careful review. If he or she is at risk of foreclosure, the bankruptcy claim initiates an automatic stay which prevents this action. The consumer provides deeds for any properties that he or she owes outright such as automobiles or rental properties. Finally, he or she offers a list of all debts complete with account numbers, and the total balance owed.
Chapter 13 Repayment Plan
All Chapter 13 bankruptcy claims require a completed repayment plan. The plan outlines how the consumer settles his or her debts over the next three to five years. According to the stipulations of the Bankruptcy Act, the consumer pays in all of his or her expendable income that is left over after settling all household obligations.
The plan includes all properties and debts that are neither discharged nor exempt under Indiana’s bankruptcy laws. It must, additionally, include information needed to allow the Hendricks County court to acquire monthly payments directly from his or her wages. After the 341 meeting, the plan goes into effect, and the consumer adheres to all stipulations listed in the case. Anyone who wishes to file for Chapter 13 bankruptcy in Hendricks County may contact The Wright Law Group of Indianapolis for further assistance.