Filing for Chapter 7 Bankruptcy in Griffith? Our Griffith Bankruptcy Lawyers Can Help
Chapter 7 bankruptcy is commonly chosen by individuals and small businesses as a means for discharging debts. Chapter 7 bankruptcy is often preferred over Chapter 13 bankruptcy because it poses the greatest opportunity to discharge the most amount of debt. Chapter 7 bankruptcy is often referred to as liquidation bankruptcy, which means that many of your assets that are not exempt from bankruptcy will be liquidated, i.e., sold, in order to repay as much of the debt that you owe as possible.
What Are Some Reasons that Debtors Prefer Chapter 7 Bankruptcy?
There are a lot of reasons why people prefer Chapter 7 bankruptcy over Chapter 13, and some of the key reasons include:
- Discharge debts now and protect future earnings. Debtors get to discharge most of the debts that they currently have, and do not have to enter into repayment plans like in Chapter 13 bankruptcy. This means that the debtor who discharges their debts in Chapter 7 bankruptcy gets to keep more of their future income than if they had discharged their debts through Chapter 13 bankruptcy.
- The amount of debt that can be discharged through Chapter 7 is virtually limitless. Most debts can be discharged through Chapter 7 bankruptcy. There are only a handful of types of debt that are excluded from Chapter 7 bankruptcy discharge by law. So long as the type of debt that you called is not one of the types of debt that is excluded from Chapter 7 bankruptcy discharge, the debt is eligible and can be discharged for Chapter 7 bankruptcy.
- Chapter 7 is a quick way to discharge debt. Chapter 7 bankruptcy is one of the quickest forms of bankruptcy that there is. Once your Chapter 7 bankruptcy proceeding concludes, the bankruptcy judge will issue a judgment that discharges your debts, leaving you free of the burden of your debts. Debtors who have to use Chapter 13 bankruptcy can get stuck in the long process of repaying creditors through their Chapter 13 repayment plan, which could take years upon years to complete.
Bankruptcy Lawyers With Your Best Interests At Heart
Individuals who are seeking to discharge their debts through bankruptcy often find that there are two main types of bankruptcy for them: Chapter 7 and Chapter 13 bankruptcy. Oftentimes, Chapter 7 bankruptcy is preferred over Chapter 13 for a number of very good reasons, which are discussed above. Anyone who is considering filing for Chapter 7 bankruptcy needs to consult with an experienced Indiana bankruptcy attorney as soon as possible to make sure that they are eligible for Chapter 7 bankruptcy and that Chapter 7 is the right choice for their particular situation.
Sometimes the debtor is not eligible for Chapter 7 and must go through Chapter 13 bankruptcy. In either case, the Griffith bankruptcy lawyers at the Law Office of Kevin M. Schmidt, P.C. can help you navigate the bankruptcy system. Reach out to our office today.