Chapter 7 Bankruptcy in NWI
Many Indiana residents have been dealing with money issues for years and for some, their finances got worse after the coronavirus pandemic hit. They may have lost a business or got laid off from their job.
When you are already having trouble paying the bills, a loss of income just makes things even worse. What can you do if you are drowning in debt? If you are not making enough to pay your bills, what options remain?
For many people in Northwest Indiana, bankruptcy is an option. While bankruptcy may sound like a bad word to many people, it is an option that has helped many people eliminate debts and start with a clean slate. There are several types of bankruptcy available, and one of them is Chapter 7 bankruptcy.
What is Chapter 7 Bankruptcy?
A Chapter 7 bankruptcy is a good option if you are in a low-income household and simply cannot repay your debts. This type of bankruptcy will erase most of your debts within several months. While credit card debts, personal loans, and medical bills will be wiped out, certain debts such as alimony, child support, student loans, tax debts, court fees, legal expenses, and some other debts will remain.
With a Chapter 7 bankruptcy, though, your assets will be repossessed in order to pay off creditors. You will not be left with absolutely nothing, though. There are some exemptions, such as:
- Intangible personal property up to $400
- All health aids
- Money in medical or health savings accounts
- Education savings accounts
- Military uniforms, equipment, and guns
In Indiana, there is also a wildcard exemption, which allows a person to protect equity in a vehicle they own, up to a value of $10,250. An Indiana bankruptcy attorney can help you understand the process and the assets you will be able to keep.
Do You Qualify?
Before you file for a Chapter 7 bankruptcy, you will need to meet two main requirements:
- You must complete an approved credit counseling course within 180 days before filing.
- You must earn less than the median income for your state based on your household size or you must pass a means test. If you do not meet either of these requirements, you will not be able to file for Chapter 7. However, you may have the option of filing for Chapter 13 bankruptcy.
Discuss Your Case With Our Indiana Bankruptcy Attorney
Many people have trouble with their finances. When you have tried various methods to get your spending back on track, but to no avail, you may feel like you are running out of options.
If you are struggling with financial issues and are having trouble keeping up with bills, bankruptcy may be a good option. Bankruptcy no longer has the stigma it once had. Schmidt, Whitten & Whitten can help you understand if Chapter 7 bankruptcy is right for your situation. To learn more, fill out the online form and request a free consultation with our Indiana bankruptcy attorney today.
Schedule A Free Consultation
At Schmidt Whitten & Whitten, we offer a free consultation during which we will examine the facts of your case and advise you on how best to proceed