Clear Your Debts Today By Hiring Bankruptcy Attorney
These attorneys can help to pay off the debts and start a fresh start.
You can file bankruptcy in 1 of the two main ways. The most common route is to file the case voluntarily and the 2nd way is for creditors to ask the court. In Indianapolis there are many different ways to file the case. Each of them has its own pros and cons. You need to consult a bankruptcy attorney before proceeding so you can figure out the best that can fit according to your circumstances.
When to file for chapter 7?
There are many reasons as to when people file for chapter 7. Some of the common reasons for filing the case are large medical expenses, unemployment, overextended credit & other marital problems. Chapter 7 is referred to as straight bankruptcy. This will liquidate all your assets to pay off the debts. The cash from the assets is distributed to different creditors like credit card companies and bank. Within a period of 4 months you would receive a notice of discharge. The record of this case would stay on the credit report for 10 years. But even this does not have to mean doom. Many people who has filed chapter 7 have bought back homes with their recent bankruptcies. For most of the people, chapter 7 offers a fresh and quick start. But this type is not right and not suitable for everybody. All the assets are taken & sold to repay creditors. If the debtor owns a family home or company or any other personal assets which he or she needs to keep them, then chapter 7 may not be suitable.
When to file chapter 13?
For those who want to keep the property, filing chapter 13 is a better choice. This is also known as reorganization bankruptcy. This enables the people to pay off the debts over a period of 3 to 5 years. For those who have predictable and consistent income, chapter 13 offers certain amount of grace period. Any debts that are remaining at the end of this grace period is discharged. Once the case has been approved by the court, creditors will stop contacting the debtor. The individuals may continue working & paying off the debts over the coming years and can still keep the property & possessions. Indianapolis bankruptcy attorney will determine whether chapter 7 or chapter 13 needs to be filed after evaluating the case. Having a good lawyer by your side can help you with a fresh start. This can also help you in having good credit score.
This article is written by Jared Andereson.With
the experience he felt the need to educate the people about legal
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