Are you getting phone calls from creditors at all hours of the day and night? Are you behind on your bills with no hope of catching up? Are you facing the possibility of losing your home? If you answered yes to any of these questions, you could be a candidate for bankruptcy. For many in Indiana, this is a smart move for their financial future.
Consumer bankruptcy is an option for individuals who are overwhelmed by certain types of debt. If you find yourself in a precarious financial situation, either Chapter 7 or Chapter 13 may offer you the opportunity to get a fresh start. Before you move forward, you will want to take the time to learn more about these two options and determine which may be optimal for your unique situation.
Choosing Chapter 7
Chapter 7 is liquidation bankruptcy. This means that some assets may have to go toward paying off debt, but there are exemptions available that will allow you to keep much of your personal property. This is an ideal choice for people who have significant amount of unsecured debt, such as credit card debt or medical debt.
While under the protection of Chapter 7 bankruptcy, a consumer will benefit from the automatic stay. This halts all contact from creditors and debt collectors during the process, which takes a few months to complete. An applicant will emerge from this process with many of his or her debts discharged. There are strict eligibility requirements for people who want to file for Chapter 7.
Choosing Chapter 13
Chapter 13 is a reasonable option for individuals who are not eligible for Chapter 7 for various reasons. Under this type of bankruptcy, a person will repay debts over a period of three to five years according to the terms of a court-approved bankruptcy plan. This is an option for individuals who want to keep their home or have a large amount of secured debt. People who apply for Chapter 13 will also enjoy the protection of the automatic stay.
Know your options
If you are considering bankruptcy, you may be wondering which is right for you. An assessment of your case with an experienced bankruptcy attorney can help you see your options and determine the right way forward for your individual situation. While filing for bankruptcy may not be your first choice, it could be the best way for you to deal with your debt once and for all, ultimately gaining the ability to look to your future with confidence.