Chapter 13 bankruptcy provides for a re-organization or consolidation of debt through reduced, affordable payments budgeted to income and living expenses. Chapter 13 stops foreclosures by allowing you to pay past due mortgage payments over a period of three to five years. Chapter 13 may allow you to restructure auto loans so that payments are more affordable. In addition, income tax debt may be re-structured. Chapter 13 bankruptcy also applies to small businesses. It allows you to continue operating your business during the re-organization period.
Chapter 11 bankruptcy is similar to Chapter 13 but is geared toward larger businesses and corporations.
Ultimately, all chapters of bankruptcy law have their benefits and detriments, and what is right for you will depend heavily on your current financial situation. A bankruptcy lawyer in Southern Indiana can guide you through your options, help you make the right decision.