If you are in debt and aren’t sure how to pull yourself out of it, declaring bankruptcy might be a good option. Speak with a Parke County bankruptcy attorney who can help you choose your next steps.
Declaring bankruptcy isn’t for everyone. But for those who have tried everything, from working multiple jobs to developing payment arrangements with creditors, to cure their debts to no avail, bankruptcy can be the best way to give yourself a fresh start.
There are a number of types of bankruptcy you’ll be able to choose from, depending on your circumstances and what you hope to achieve. Speak with a Parke County bankruptcy lawyer at Rowdy G. Williams Law Firm. We can explain each option in full to ensure that you are making the right decisions.
Is Chapter 11 Right for Me?
Chapter 11 bankruptcy is usually chosen by business owners who want to keep their doors open by strategically repaying their creditors over a period of time.
Chapter 11 is likely a good option if you have the financial means to begin to formulate a way to repay your creditors and hope to retain possession of your belongings while you do so.
Once you’ve filed, you’ll work with your creditors to come to a reasonable plan. Creditors will be able to make suggestions of their own and vote on your proposal.
If you are able to stick your plan, once you’ve met your obligations, your remaining debts will be dismissed and you’ll be able to move forward. However, a bankruptcy will remain on your credit report for ten years.
Chapter 7 Bankruptcy Explained
Possibly the most frequently thought of when discussing bankruptcy, Chapter 7 includes the sale and liquidation of your assets and disposable income as a way to pay off your creditors. This option is usually a last resort, as you’re giving up everything of value in order to give yourself a clean financial slate.
You will have the option of retaining certain assets, such as your home or your vehicle, but you’ll need to work with your creditors to come to a repayment plan so you become current on your outstanding debts and then sign a reaffirmation agreement that will allow you to keep these assets despite your Chapter 7 status.
Once your assets have been sold, your remaining debts will be discharged and you’ll be able to start your financial future off right. It should be noted that back taxes, alimony, child support, and student loans are not dischargeable debts and you’ll be obligated to continue to repay them after your Chapter 7 case closes.
Filing for Chapter 13
If you are an individual with debts of less than roughly $394,000 and you want to retain possession of your belongings while repaying your creditors over time, Chapter 13 bankruptcy might be the best option for you.
As in Chapter 11 bankruptcy, you’ll need to work with your creditors to come to a plan of reorganization before you’re approved. Once you’ve come to a payment arrangement that meets your needs and those of your creditors, you’ll stick to the plan and repay your debts over a period of three to five years.
If, for a reason beyond your control, you are not able to stick to your plan and you fall behind on your payments again, you could be issued a hardship discharge, in which your remaining debts will be discharged as long as your creditor has received what it would have if you had been compelled to declare Chapter 7.
Regardless of the type of bankruptcy you choose, a bankruptcy lawyer in Parke County can facilitate the process from start to finish, giving you sound legal advice every step of the way.
Connect with a Parke County Bankruptcy Attorney
When you’re considering filing for bankruptcy but aren’t sure which option will work best for you, get in touch with a knowledgeable attorney at Rowdy G. Williams Law Firm. Our team can help you go over all of your debts and income to determine how you should move forward.
We are proud to offer free, no-obligation case evaluations to our prospective clients. Take advantage of the opportunity to meet with a Parke County bankruptcy lawyer today by filling out the quick contact form below or giving our office a call at 1-812-232-7400.