Bankruptcy is one thing nobody thinks about. However, it is important to know all types of bankruptcies. In case you feel the need to file for bankruptcy, you might need to understand everything about the bankruptcy laws. Any lawyer will tell show you the advantages of chapter 13 over chapter 7. Below are things you should know about the bankruptcy laws.
Filing for bankruptcy is one of the scariest option to take but necessary. You file for bankruptcy when suffering financially and in debts. Bankruptcy laws have faced multiple changes over the years. Filing for bankruptcy is an advantage to you as well as a drawback. Hire a bankruptcy lawyer might be the best option.
A chapter 7 bankruptcy is considered as liquidation bankruptcy and suitable for individuals without regular income. It is a common type of bankruptcy that most people file. The fees are not high and have conditions that make it easy for any person to pay.
Chapter 13 bankruptcy is among the active bankruptcies. The bankruptcy is called a reorganization bankruptcy. It sets conditions on how to repay the loan or force you to pay the creditors within a certain period. It doesn’t expect your properties to be liquidated. Nevertheless, you may repay the debt within three to five years.
Bankruptcy in Indiana can be a painful process to live through. Filing bankruptcy in Indiana should only ever take place if you have the help of a reliable Indiana bankruptcy attorney at your side. Indiana bankruptcy attorneys will be able to show you the options that remain for your credit. Indiana bankruptcy lawyers can plan the filing for bankruptcy on your behalf in a way that protects you from as much debt collection as possible while still remaining legal. If you are on the hunt for an Indiana bankruptcy lawyer that you can trust, research any given Indiana bankruptcy lawyer that you have the name of online before you hire one of them.
Qualifying for Chapter 7 bankruptcy requires that you must first submit to what is called a means test, which will assess your ability to manage paying your debts based on the median income for a family of your size in your area. Failure to qualify for Chapter 7 bankruptcy will subject you to Chapter 13 bankruptcy, a plan under which you will be responsible to repay all or most of your debt during the next 3 to 5 years.
Celebrities including Elton John, Willie Nelson, Anna Nicole Smith, Mike Tyson, Larry King and Jerry Lee Lewis have all filed for bankruptcy. There are certain forms of debt that will not be discharged under bankruptcy, including alimony, child support, student loan and fraud debts, so let a professional in Indiana help you determine your bankruptcy options.