The past year has been financially difficult for many Indiana residents. For those who are considering bankruptcy under Chapter 13 there is some helpful information available about the program.
Chapter 13 bankruptcy is a type of bankruptcy which requires that a portion of the debt is paid back to creditors over time. Generally, the debtor will pay the agreed amount due in monthly installments and the process may take between three and five years.
Credit counseling course
There are several requirements to successfully complete a Chapter 13 bankruptcy, one of which is to take a credit counseling course.
Credit counseling can be taken online, over the phone or in person. It must be taken through a program that is authorized by an approved credit counseling agency.
In some situations, a fee waiver may be available for the course for people who are unable to pay. A request for a fee waiver should be made before the course begins, however.
The debtor should ask the agency to provide a credit counseling completion certificate and a copy of the debt repayment plan to file with the bankruptcy petition. The certificate must show that the counseling was taken within 180 days of when the petition was filed.
If this course is not completed, the bankruptcy case may be dismissed and the person’s debts may not be discharged.
Bankruptcy can be complicated and is dependent on the debtor’s individual circumstances. However, there is help available to ensure the process is completed correctly.
An experienced attorney can answer questions and provide guidance about available bankruptcy options.