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Home > Blog > Bankruptcy and Debt Relief > How to Know When It’s Time to File for Bankruptcy

How to Know When It’s Time to File for Bankruptcy

When you find yourself in a considerable amount of debt that you just can’t seem to pay off without help, filing for bankruptcy could be in your best interests. However, you might not know if this is the right time to file for bankruptcy or if you’ll even qualify. 

Continue reading to learn more about the bankruptcy process, whether bankruptcy is right for you, and if so, which type of bankruptcy you should pursue. 

Exhausting All of Your Resources

Before anything else, you’ll need to determine whether bankruptcy is the appropriate option for repaying your debts. Often, when an individual has taken on multiple jobs and is still having trouble making ends meet, bankruptcy can be a suitable option.

Although declaring bankruptcy has a bad reputation, filing for bankruptcy is actually an excellent option for those who are weighed down by a massive amount of debt with no reasonable way to pay back. Declaring bankruptcy is a great way to clear your financial slate and give yourself a fresh start. 

If you’ve exhausted all of your resources and have still been unable to repay your creditors, get in touch with a regarded bankruptcy attorney in Indiana who can help you determine which form of bankruptcy will be the right fit for you. 

Types of Bankruptcy

There are a few different types of bankruptcy you can choose from, depending on the circumstances of your case. Chapter 7 is the most common type of bankruptcy that people think of when they hear about or are considering a bankruptcy declaration. Here, the individual filing for bankruptcy will have their nonexempt assets and possessions liquidated and sold in order to repay their creditors. 

Once your assets have been sold and the creditors have been repaid, your remaining debts will be discharged. However, meeting the eligibility requirements can be difficult, as only those who earn a maximum of $12,000 per year will qualify. 

Chapter 13 is more common for debtors to pursue, as they’ll be able to formulate a plan of repayment that spans over a period of three to five years in order to pay off their debts. After you’ve met the objectives of your repayment plan, any remaining debts will be discharged and you’ll finally have that clean slate you need to move forward with your life. 

Finally, those who are business owners who wish to remain open and repay their creditors over time will seek a Chapter 11 declaration. Very similar to a Chapter 13 declaration, if you choose Chapter 11, you’ll have a certain amount of time to meet your reorganization plan obligations and your debts will be discharged upon its completion. 

Reach Out to an Indiana Bankruptcy Lawyer

If you have further questions about whether bankruptcy is the right choice for you, or if you want to know which type of bankruptcy you should pursue, consult a highly trained Indiana bankruptcy lawyer at Rowdy G. Williams Law Firm. You can give our office a call at 812-232-7400 or complete the convenient contact form below to schedule your free case assessment today.

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