Lake County Bankruptcy Attorney
“Bankruptcy” is not a bad word. Although it can have negative connotations because it is frequently used as shorthand for financial failure, these connotations do not accurately portray bankruptcy for what it is: a tool.
Bankruptcy provides individuals who struggle with their debt to take control of the debt with the court’s assistance. Sometimes, bankruptcy is exactly what an individual needs to stop his or her debt from continually compounding and becoming more and more unmanageable. If you are considering filing for bankruptcy, discuss your case with an experienced bankruptcy lawyer.
Chapter 7 and Chapter 13 Bankruptcy
There are two types of bankruptcy for individuals who are struggling with personal debt like credit card and medical debt. They are Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 bankruptcy, also known as liquidation bankruptcy, is only available to individuals who pass the Chapter 7 means test. In a Chapter 7 bankruptcy case, the filer’s nonexempt assets are liquidated and the profit from their sale is used to satisfy his or her debts. The filer has less control over his or her case with Chapter 7 bankruptcy, but it provides a more straightforward path to financial freedom than Chapter 13.
Chapter 13 bankruptcy, also known as the wage earner’s plan, is for individuals who do not qualify for Chapter 7 bankruptcy and those who do, but have sufficient income to complete this process instead. With Chapter 13 bankruptcy, the filer submits a repayment plan to the court for approval. When the court approves his or her plan, the filer has three to five years to repay his or her debt by following a carefully structured budget and repayment schedule. This chapter takes longer to complete, but does not require the filer to give up any of his or her assets.
When either type of bankruptcy is filed, the automatic stay goes into effect. This order stops all creditors’ collection attempts.
How Working with a Bankruptcy Lawyer can Help You
A lawyer is a legal advocate for his or her client. Bankruptcy is a legal procedure that involves many complex terms and processes. Although you certainly can complete the bankruptcy process without a lawyer, doing so puts you at risk of invalidating your case or spending more money than necessary to satisfy your debts. When you have a lawyer, you have somebody who can explain every process to you, keep you informed about your rights, and negotiate with your creditors and the court to determine fair rulings for your case.
Work with an Experienced Merrillville Bankruptcy Attorney
When you no longer have control over your personal debt, bankruptcy can be a way for you to regain control. To determine whether you are a good candidate for bankruptcy and if so, which chapter is right for you, contact the Law Office of Kevin M. Schmidt, P.C. to schedule your free consultation with an experienced bankruptcy lawyer. During your consultation, we will answer all of your questions and advise you toward the most effective course of action for your case.