Bankruptcy Attorney Valparaiso
Millions of Americans experience financial difficulties every day, often due to circumstances over which they have no control. For most people, things like unexpected expenses, an illness, the loss of a job, or poorly performing investments can create considerable financial problems, often leading to high levels of debt. In some cases, these debts grow to the point that consumers are unable to stay on top of them, potentially causing significant financial distress.
Fortunately, bankruptcy can help many consumers reduce or even eliminate their debt and obtain a fresh financial start. Bankruptcy is not a one-size-fits-all solution, however, so if you are considering filing for bankruptcy, you should discuss your situation with an experienced bankruptcy attorney in Valparaiso first. Call Kevin M. Schmidt, Attorney at Law, today to schedule a free case evaluation with a lawyer.
Chapter 7 Bankruptcy
Chapter 7 is the most common type of consumer bankruptcy filed in the United States. Also known as liquidation bankruptcy, Chapter 7 involves the liquidation of a consumer’s non-exempt assets and using the proceeds to pay off creditors to the extent possible. At the conclusion of the bankruptcy, the debtor’s remaining debts will be discharged, unless they are certain types of debts that have been made nondischargeable by law. Some examples of debts that are commonly discharged in Chapter 7 bankruptcy include:
- Credit card debts
- Medical bills
- Past-due rent
- Utility bills
- Personal loans
- Business loans
- Certain tax debts
- Auto loans
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is commonly known as reorganization bankruptcy and is most appropriate for people who earn a steady income and want to hold onto their assets. In a Chapter 13 bankruptcy, you enter into a repayment plan with the court that will last three to five years. During this time, you are protected from any collection activity on the part of your creditors, including repossessions and foreclosures. Notably, for homeowners, if you are behind on your mortgage, you can include your mortgage arrears in Chapter 13, potentially allowing you to avoid foreclosure if you are behind on your payments.
Do You Need a Lawyer to File for Bankruptcy?
If you are in financial trouble, you may be considering trying to save some money by filing for bankruptcy on your own. While this logic is understandable, it’s important to understand that filing for bankruptcy is extremely complicated, and any mistakes that you make in the filing process could result in your petition being rejected or even potential criminal liability for bankruptcy fraud. By working with an experienced attorney, you can rest assured that your case will go as smoothly as possible and that you will obtain the maximum benefit available under the U.S. Bankruptcy Code.
Call Us Today to Schedule a Free Consultation a Bankruptcy Attorney in Valparaiso
If you are having trouble keeping up with your bills and feel like you are in a never-ending cycle of debt, you should talk to an attorney as soon as you can. To schedule a free, no-obligation consultation with Kevin M. Schmidt, Attorney at Law, contact us today.