Lake County Chapter 7 Bankruptcy Attorney
There are many different types of bankruptcy. They are known as chapters. Each chapter of bankruptcy is meant to help individuals and companies manage specific types of debt. For individuals struggling with personal debt, Chapter 7 and Chapter 13 bankruptcy are potential solutions for financial recovery.
In many cases, an individual does not have both options. Most individuals have the option to file for Chapter 13 bankruptcy, also known as a wage earner’s plan. Fewer individuals have the option to file for Chapter 7, or liquidation bankruptcy. Chapter 7 bankruptcy is a more extreme process than Chapter 13, but offers the unique benefit of quickly providing a “blank slate” for the filer.
Qualifying for Chapter 7 Bankruptcy
The Chapter 7 Means Test is the simple test that determines whether or not an individual qualifies for Chapter 7 bankruptcy.
If your monthly income is less than the median monthly income for a household of your size in your state, you pass the means test and qualify for Chapter 7 bankruptcy.
If you earn the median income for households of your size in your state or you earn more than this amount, you can still qualify for Chapter 7 bankruptcy if your means test results show that you do not have sufficient disposable income to complete a Chapter 13 bankruptcy.
Working through the Chapter 7 Bankruptcy Process
When you file for bankruptcy, the automatic stay goes into effect. This halts all of your creditors’ collection attempts.
Next, your case is assigned to a bankruptcy trustee, a representative of the court who oversees the bankruptcy process. Within 30 days of filing for bankruptcy, he or she organizes a meeting of your creditors. During this meeting, you, your creditors, and your bankruptcy trustee will go over your assets and liabilities to determine your financial fitness to work through the bankruptcy process.
To repay your creditors, your nonexempt assets are liquidated. Nonexempt assets are the items you do not need for your daily life, like work clothing and personal items. Electronics, recreational items, and collectible items are often the items liquidated to repay creditors. Talk to your lawyer about the items that are exempt from liquidation under Indiana bankruptcy law to determine which of your possessions you can keep and which will be sold to satisfy your debts.
Once your creditors are repaid, you are eligible for a Chapter 7 discharge. This is the elimination of any remaining eligible debts that remain after repaying your creditors. Once your debt is discharged, your case is closed.
Work with an Experienced Merrillville Bankruptcy Attorney
When your personal debt reaches the point where it is unbearable, work with an experienced bankruptcy attorney to work toward eliminating it through Chapter 7 bankruptcy. To start working on your case, contact our team at the Law Office of Kevin M. Schmidt, P.C. today to set up your free consultation in our office. We can answer all of your questions and get you started on your bankruptcy case.