Northwest Indiana Chapter 7 Bankruptcy Lawyer
Many people can relate to being low on cash at some point in their life. However, when a constant lack of income coupled with crushing amounts of debt combine, the experience goes from basic–and arguably normal–money insecurity to downright fear about what one’s financial future may hold. If you are at a point in your life where you are afraid to check the mail or answer the phone and deal with yet another creditor, and are very low income as well, filing for Chapter 7 bankruptcy may provide you with the relief you need.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, also called liquidation bankruptcy, is a type of bankruptcy where debtors are allowed to eliminate the majority of their debts, although it should be noted that certain debts, such as student loan debt, will not be discharged. While Chapter 7 bankruptcy does not require debtors to create a repayment plan where they pay back a portion of their debts over time, it does have some drawbacks. These drawbacks include loss of assets and a negative hit to your credit score. There are also eligibility requirements for Chapter 7 bankruptcy, which means that not just anyone can choose this bankruptcy type.
Eligibility Requirements for Chapter 7 Bankruptcy
In order to qualify for Chapter 7 bankruptcy, a debtor must past the means test. This “test” looks at an individual’s financial picture, including income and assets. If an individual’s income surpasses income limits, they will not be able to file.
Keeping Your House and Other Assets When You File for Chapter 7 Bankruptcy
One of the true benefits to filing for bankruptcy is that as soon as you file, the automatic stay goes into effect, which prevents creditors from collecting on debt temporarily. This means that if asset seizure or foreclosure has been threatened, you will have a little more time to figure out your financial situation before creditors can take those assets.
However, that does not mean that you will be able to keep all of your assets. While there are some exemptions when filing for bankruptcy, including an exemption for equity you have in your home, there is a strong chance that you will have to let go of many assets.
Working with a Northwest Indiana Chapter 7 Bankruptcy Attorney
We know that if you are struggling to pay your bills due to a combination of significant amounts of debt and very little income, you may be considering bankruptcy. Before you file for Chapter 7 bankruptcy, though, it is strongly recommended that you work with an experienced attorney who can help you to understand all options to alleviate debt, including alternatives to bankruptcy. Your attorney can also help you to under the benefits, consequences, and how-tos of filing for Chapter 7.
At the Law Office of Kevin M. Schmidt, P.C., our lawyers are ready to assist you. Please call us today or send us an email to schedule an initial consultation.