Whether you qualify for bankruptcy will be based on a number of different factors, including the type of bankruptcy you choose to declare, the amount of debt you have, your income, and your necessary living expenses. With this in mind, below we describe the different types of bankruptcy you can choose from and what will happen once you’ve met your obligations.
Which Type of Bankruptcy Is Right for You
There are three main types of bankruptcy that you’ll have to choose from: Chapter 7, Chapter 13, and Chapter 11. A Chapter 7 bankruptcy declaration is designed for those who are living at or below poverty level, which is approximately an income of $12,000 annually. This type of bankruptcy will require you to liquidate and sell your valuable assets in order to repay your debts.
If you are living above poverty level and are able to repay your debts, you’ll be able to repay your creditors over a span of three to five years when you file for Chapter 13 bankruptcy. Similarly, a Chapter 11 declaration is for business owners who don’t want to close their doors.
In both instances, you’ll formulate a plan of repayment that meets both yours and your creditors needs, and you’ll repay these debts over time.
What Happens When You’ve Met Your Obligations
In every type of bankruptcy, whether you’ve sold your assets or designed a repayment plan, you can expect your debts to be officially discharged once you’ve met the obligations of your bankruptcy case. This means that your creditors will no longer be able to attempt to collect your debts and you’ll finally have the clean financial slate you’ve been searching for.
Contact an Indiana Bankruptcy Lawyer
If you have further questions about the qualifying criteria for declaring bankruptcy, you can get in touch with an Indiana bankruptcy lawyer at Rowdy G. Williams Law Firm. Schedule your complimentary case assessment today by giving our office a call at 1-812-232-7400 or by completing the convenient contact form at the bottom of this page.