Although bankruptcy is a great move for those who have found themselves in an unfortunate financial predicament, it’s still comes with its negative stigmas. This is probably due to the fact that some people think it’s unfair for corporations and individuals to get out of paying their debt. However, this view and idea of bankruptcy couldn’t be further from the truth.
Filing Bankruptcy in Indianapolis, IN doesn’t automatically erase all of your debt. These petitions have to get approved by a judge, as well as by the creditors involved. Most importantly the debtor almost never gets out of debt without paying some amount of money. The process is designed to allow those who qualify, and really need bankruptcy, to get out of debt and get back on track.
Debtors will have the option of choosing between Chapter 7 and Chapter 13 bankruptcy. The most common of these two is Chapter 7. Chapter 7 bankruptcy is available to businesses and individuals who have accumulated a significant amount of debt, and who are unable to pay it back. In order to be eligible a debtor must generate less income than the minimum income in their state. If they’re eligible, bankruptcy will be able to handle your unsecured loans and credit card debt.
Chapter 13 bankruptcy is available to those who’ve accumulated an obscene amount of debt, but still make more than their state’s minimum income. This bankruptcy option is more of a repayment plan than a debt eliminator. Instead of liquidating their assets, a debtor will work with the courts and creditors to come to a repayment agreement. The repayment plan is based on the income of the debtor and must be approved by the courts. Although Filing Bankruptcy in Indianapolis, IN with Chapter 13 doesn’t getting rid of any debt, it does prevent foreclosures and calls from creditors.
Those considering bankruptcy should be aware of the advantages and disadvantages. On one hand it can help you get your debt under control. On the other hand, filing for bankruptcy can damage your credit for some time. This is why the scrutiny and stigmas that go along with bankruptcy filings aren’t always true. Contact The Wright Law Group of Indianapolis for more information.
