Lake County, IN Bankruptcy Lawyer
Filing for bankruptcy in Indiana is not much different than filing for bankruptcy in other states in the U.S. This is because much of bankruptcy law is governed at the federal level. For those who have fallen hopelessly into debt, are being harassed by creditors, and do not believe that they will ever be able to repay their debts, the law provides a solution to their problems.
Bankruptcy Gives You an Automatic Stay from Creditors
As soon as you file for bankruptcy, you get an automatic stay from your creditors. That means that it is unlawful for them to put liens on your property, garnish your wages, or even call you over the telephone. This can be a great burden off your back, especially if you are facing serious threats.
Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy
Chapter 7 and Chapter 13 represent the two most common forms of bankruptcy that individuals file. There are advantages and disadvantages to both. In addition, there are qualifications for each that need to be met and restrictions that apply.
Chapter 7 bankruptcy is known as liquidation bankruptcy. In other words, you will be expected to liquidate certain assets in order to, at least partially, pay back your creditors. Often, however, the bankruptcy trustee will not find any assets worth liquidating and there are certain exemptions that you can claim, including your house.
Chapter 13 bankruptcy is known as reorganization bankruptcy. You and your creditors sit down and hammer out a repayment plan that is executed over the course of (typically) five years. The upside of Chapter 13 is that none of your assets are liquidated. On the other hand, there are limitations concerning the amount of debt you owe and you will have to devote a portion of your income to repay your debts.
Which Form of Bankruptcy is Better for Me?
This question will often come down to whether or not you qualify for Chapter 7 bankruptcy. Those who do are likely to select that option over Chapter 13. Nonetheless, there are certain debts that cannot be discharged by Chapter 7. Those who have those types of debts would be better off selecting Chapter 13.
The Lake County, IN bankruptcy attorneys at the Law Office of Kevin M. Schmidt have successfully managed numerous bankruptcies for our clients and given them the financial freedom to breathe a sigh of relief as their debt spiraled out of control. Give us a call at (219) 756-0555 or contact us online and we can begin discussing your options immediately.