When You Need Bankruptcy Advice, Call A Crown Point Bankruptcy Lawyer
Sometimes life gets out of hand, and your finances go with it. People can be left in a financial pinch, with creditors calling, demanding repayment on your outstanding debts. Sometimes it makes sense for an individual who is in debt to declare bankruptcy in order to discharge some, if not all, of their debts. Deciding whether to file for bankruptcy is a big decision that should not be taken lightly.
How Bankruptcy Can Help You
Bankruptcy is a legal way to discharge your debts, or reduce the amounts that you owe. It can be a very useful means of dealing with your financial situation, but bankruptcy comes with certain limitations and consequences that you should be aware of if you are considering filing for bankruptcy. A few examples include:
- You must be eligible to file bankruptcy in the first place.
- Some debts are not dischargeable through bankruptcy, such as child support obligations and student loans – so you might not be able to discharge all of your debt with bankruptcy.
- If your bankruptcy is successful, you will be barred from filing for bankruptcy again for a set amount of time.
- Declaring bankruptcy will have an impact on your credit rating, which can make it more difficult to get banks to lend you money or credit in the future.
Before you make any sort of decision about proceeding with bankruptcy, you should speak with an experienced Crown Point bankruptcy lawyer to get a better understanding of what options may be available to you.
Choosing Between Chapter 7 and Chapter 13, We Can Help
Bankruptcy law can be complicated to those who are unfamiliar with it. One of the most confusing aspects of bankruptcy law is that there are different types, also known as chapters. Each type of bankruptcy is good for certain debtors who meet certain eligibility criteria. Once an individual determines the chapter of bankruptcy law that applies best for their particular situation, they can file for bankruptcy under that chapter. A brief overview of the most frequently used types of bankruptcy includes:
- Chapter 7 Bankruptcy. Chapter 7 is one of the most common forms of bankruptcy that individuals and businesses use to discharge their debts. Eligibility requires that the debtor satisfies a means test, meaning that their income level must be less than Indiana’s median income for the whole state. In this form of bankruptcy, most assets are liquidated, and the debtor walks away from nearly all of his or her debts.
- Chapter 13 Bankruptcy. Chapter 13 bankruptcy is for individuals who are interested in restructuring their debt. This type of bankruptcy is also typically used by individuals who do not qualify for Chapter 7 bankruptcy. Under this type of bankruptcy, debt is restructured, and some creditors will be paid in full, while others will be paid a reduced amount.
Talk To A Crown Point Bankruptcy Attorney First
If you are considering bankruptcy as an option for your financial situation, it is important that you take the time to consult with a Crown Point bankruptcy attorney about what options you have. The professionals at the Law Office of Kevin M. Schmidt, P.C. are ready and available to help you. Contact us online, or you can give our office a call by dialing 219.756.0555.