The decision to file for bankruptcy is a difficult one. Many want to ensure that they have exhausted all other options before filing. In these cases, you may be so bogged down with debt that you cannot reasonably afford to ever pay it back. However, you will want to consider several factors before you file. Discussing the matter with a Danville, IN, bankruptcy attorney may provide you with the help you need to escape your financial woes.
Types of Bankruptcy in Indiana
Individuals can file under two different chapters of bankruptcy. The first is Chapter 7, and the second is Chapter 13. In a Chapter 7 bankruptcy, you can gain a discharge of all non-secured debts, including credit card debt, personal loans, and medical debt. In Chapter 13, you make repayments to your creditors over a three- or five-year period to repay some (but not all) of your debts. Most individuals file under Chapter 7.
When to file for bankruptcy in Indiana
- When you are facing creditor lawsuits – If you are facing lawsuits from your creditors, it may be a good time to consider bankruptcy. If you allow the lawsuits to move forward, the creditors will be able to place a lien on your home, levy your bank account for the amount of money owed, or garnish your wages. You can avoid all of this by filing for bankruptcy before the creditor has a judgment against you.
- When you are facing foreclosure of your mortgage – You can stop the foreclosure of your mortgage by filing for bankruptcy. In these cases, all creditor actions against you must stop once you file under either Chapter 7 or Chapter 13. If you elect to file for Chapter 13 bankruptcy, you may be able to keep your home. A Danville, IN, bankruptcy attorney can help you save your home from foreclosure by filing for bankruptcy.
- When you are facing the repossession of your vehicle – Bankruptcy can stop or at least delay the repossession of a vehicle. Once you file for bankruptcy, all creditor actions against you must immediately cease. In these cases, the auto loan provider will not be allowed to repossess your vehicle until your bankruptcy has been finalized. You may be able to rehabilitate the loan in Chapter 13 or discharge enough of your unsecured debt to afford payments on the car.
- When you have exhausted all other options related to the repayment of your debt – If you are so hopelessly in debt that you can never pay your way out, you might consider filing for bankruptcy. In these cases, you can avoid the garnishing of your wages or a levy on your bank account. A Danville, IN, bankruptcy attorney can help you file and get a financial clean slate.
Talk to a Danville, IN, Bankruptcy Attorney Today
Chris Arrington represents the interests of those who need to file for bankruptcy in Danville, IN. Call our office today to schedule a free consultation, and we can begin discussing your next moves immediately.