Legal Question in Bankruptcy in Indiana

chapter 13 bankruptcy guidlines

if a person has approximately 15,000 in credit card debt but no medical debt could they quailify for bankruptcy whether it be chapter 7 or 13? If they would qualify for chapter 13 and a payment plan is established does this stop interest from being charged or what stops the balance from continuing to increase because of interest?

Is retirement accounts required to be cashed out to pay on the debts? If the only position you own is a vehicle and you owe the bank about the same as the worth of the vehicle can you keep it and continue to pay off that loan?


Asked on 5/01/03, 6:33 pm

1 Answer from Attorneys
Eric Southward Southward & Haggard

Re: chapter 13 bankruptcy guidlines

You generally qualify for a chapter 7 based on your income and expenses, equity in personal property and real property and if your debts are potentially dischargeable or not. This is what you discuss with an attorney and together you determine which case is best. If you have to file a chapter 13 based on the above, the amount you owe is based on the day you file. The debt doesn't increase after the date of filing.

Most retirement accounts are exempt from being taken in bankruptcy, but let an attorney tell you which are and which are not. In a chapter 7, car loans are generally either kept pursuant to the contract or surrendered. In a chapter 13, you can possibly reorganize your vehicle loan. Again, speak to a bankruptcy attorney about the above because each situation above is unique and there are many variables that must be evaluated and considered before deciding which type of bankruptcy to file, what property is safe from attachment and how loans will be treated in the bankruptcy.

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Answered on 5/01/03, 6:50 pm


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