Valparaiso Bankruptcy Lawyer
When people are facing bankruptcy, they often think it is the worst thing that could ever happen. That is not true, though. Bankruptcy, while no one’s first choice, has helped millions of people across the country get out of debt and begin on a new financial start. Common misconceptions about bankruptcy have given it a bad reputation over the years. However, when done properly, bankruptcy is an option that gives many the freedom for which they have been searching.
Anyone who is considering bankruptcy in Indiana should speak to a Valparaiso bankruptcy lawyer who can help them determine what type of bankruptcy is right for them.
What is Bankruptcy?
Bankruptcy is a proceeding that happens in federal court and is available to anyone in the country who is having trouble meeting their financial obligations. The code on bankruptcy is outlined in federal law. These statutes outline the different types of bankruptcy, as well as the rules and procedures to follow. This code is divided into sections, which are known as chapters. All of the chapters are still considered bankruptcy, although they allow debtors different options for relieving their debt.
The two most common types of bankruptcy are Chapter 7 and Chapter 13 bankruptcy. Chapter 13 allows for a restructuring of debts to allow debtors the chance to repay their debts over a period of three to five years. Chapter 7 on the other hand, allows for discharging debt completely.
The Benefits of Bankruptcy
While it may not seem like it at first, bankruptcy does hold many benefits. The first, and most important to many who file for any type of bankruptcy, is that it will stop harassment from creditors. Once an individual is in any stage of bankruptcy, creditors can no longer call and harass him or her for payment. Wages can no longer be garnished and in some cases, foreclosure proceedings are stopped.
When a debt is secured with property, such as a car loan, creditors can often seize this property. They will then sell it and apply the proceeds of the sale against your debt. If the proceedings from that sale are not enough, which is often the case when someone is considering bankruptcy, the creditor will then file a lawsuit against the debtor. Bankruptcy can also stop these civil lawsuits from proceeding.
Impact to Your Credit Score
If there is one reason people are reluctant to file for bankruptcy, it is because they know it will affect their credit score. This is true. Bankruptcy is viewed very badly among creditors and those who tabulate credit scores. However, this should never be a reason for anyone to not file for bankruptcy. Once a person is considering bankruptcy, his or her credit score has usually already been severely and negatively affected. In many instances, filing for bankruptcy allows a person to start from scratch sooner than if he or she had simply tried to clear the debt on his or her own.
A Bankruptcy Lawyer in Valparaiso can Review Your Options With You
It is true. No one ever hopes to go into bankruptcy. Unfortunately, sometimes it is the only answer. When that is the case, it can provide more financial freedom than you would ever imagine. A Valparaiso bankruptcy lawyer can help when you are weighing your options.
If you are in financial trouble and have been considering bankruptcy as an option, contact the Law Office of Kevin M. Schmidt, P.C. We will review all of your options, determine if bankruptcy is right for you and if so, the best type for which to file. Call us today or fill out our online form for your free consultation.