Munster Bankruptcy Lawyer

If you find yourself struggling to pay your debts each month, scrimping and stretching your budget to the point that you are having a difficult time buying groceries and paying your rent, filing for bankruptcy could be the right choice for you. Bankruptcy is not a personal failure, it is a tool you can use to drastically reduce or even completely eliminate your personal debt. If you are facing financial hardship because of your personal debt, do not wait to take action – your debt will only continue to compound and grow. Instead, talk to a bankruptcy lawyer about your options.

Eliminating Debt Through Bankruptcy

There are many different types of bankruptcy, known as chapters. Each is for a specific type of debt and financial recovery plan. Chapter 11 is for businesses that want to reorganize to become profitable again, and Chapter 12 is for family farmers with stable incomes.

There are two bankruptcy chapters for individuals with personal debt – Chapter 7 and Chapter 13. Through these chapters, an individual can discharge many different types of unsecured debt, such as credit card debt, medical debt, personal loans, and utility bills. In certain cases, secured debts can be discharged as well.

These two bankruptcy chapters are quite different, and not everybody qualifies for both. Even when an individual does qualify for both, one might be a better choice based on the individual’s circumstances.

Chapter 7 Bankruptcy

Chapter 7, known as liquidation bankruptcy, is only available to individuals who pass the Means Test. To pass this test, one must either earn less than his or her state’s median annual income for a household his or her size or demonstrate that he or she does not have enough disposable income to be disqualified from Chapter 7 bankruptcy.

With Chapter 7 bankruptcy, the filer’s nonexempt assets are sold and the profit is used to satisfy his or her debts. Once the assets are sold and the debt is repaid, the individual’s debts are wiped free.

Chapter 13 Bankruptcy

Chapter 13, also known as a wage earner’s plan, is for individuals who have the disposable income to repay their debts on their own. Repaying debt through Chapter 13 takes longer than repaying it through Chapter 7, but it allows the filer to retain greater control over his or her case. With Chapter 13 bankruptcy, the filer repays his or her debts over the course of three to five years while under the supervision of a court trustee.

Work with an Experienced Munster Bankruptcy Lawyer

When you are struggling to repay your personal debt, discuss your case with an experienced bankruptcy lawyer to determine whether bankruptcy is the right choice for you. If so, your lawyer can help you determine which chapter is a better choice for your case and advise you about the next steps to take with it. Contact Whitten & Whitten. today to set up your initial legal consultation in our office.