Making the Choice to File for Bankruptcy 10.13

Sometimes situations arise in people’s lives when debt becomes overwhelming and unmanageable. When this happens, it is recommended you speak with an Indiana bankruptcy attorney to find out what options you have available to get out of debt. Filing for bankruptcy is usually used as a last option by most people when they have more debt than they can pay and need to start over or reorganize their debt. There is nothing to be ashamed of when filing for bankruptcy. The good thing about bankruptcy is that it gives you chance to start over without debt or reduced debt if you opt to enter into a court-approved reorganization bankruptcy plan with your creditors.


Advantages of Filing for Bankruptcy


Millions of people find debt relief by filing for bankruptcy. The biggest advantages of bankruptcy is that it prevents your creditors from collecting a debt against you so you don’t have to worry about them calling you or filing a lawsuit or getting a judgment against you. You get to eliminate your debt or restructure it depending on which bankruptcy Chapter you file under.


Before you file, you should consult with an experienced Indiana bankruptcy attorney. The attorney can review you financial situation and make suggestions for all options that can help you get out of debt and relieve your stress. In some instances, you may be able to negotiate a settlement of your debt with your creditors such as debt reduction. If you are underwater on your home mortgage, you may qualify for a mortgage modification or a refinance with a lower interest rate. Since everyone’s financial situation and debt is different, the Indiana bankruptcy attorney will be able to structure a plan that works for your individual financial situation.


Disadvantages of Filing for Bankruptcy


Bankruptcy negatively affects your credit a bankruptcy remains on your credit of 10 years. However, the biggest negative impact occurs immediately after you file. You may be denied credit for a short time or have to pay higher interest rates for a few years and wait a couple years before you can take out a new mortgage. The good thing is credit improves over time.


Deciding Which Chapter to File Under?


If it turns out that bankruptcy is the right choice for you, your Indiana bankruptcy lawyer can help you decide which bankruptcy Chapter to file under that will provide the best solutions to your debt problems.  If you do not have a lot of assets, a Chapter 7 complete liquidate may be the best alternative. Keep in mind that you may not have to liquidate all your assets under Chapter 7. There are bankruptcy exemptions and homestead exemptions that allow you to keep some of your property such as your home or car.


If you have a business or you have substantial assets that you want to keep, then a reorganization plan Under Chapter 11 or Chapter 13 may be a better solution. With a Chapter 11 or Chapter 13, you can keep all your assets because you enter into a court-approved repayment plan for a period of approximately five years. Once you complete the plan, your unsecured debt will be discharged as well.


Indiana Bankruptcy Attorney Help


By talking to an Indiana bankruptcy attorney you will become informed about your legal rights and options in order to make the right decision to eliminate or reduce your debt.