If you are considering bankruptcy, you likely have a million questions about the entire process, which includes what will happen to your assets. This is a complex question, as the answer really depends on what type of bankruptcy you are declaring.
Below, we go into further detail about the different bankruptcy options that may be available to you, how your assets will be impacted, and what happens once you have met your obligations in your bankruptcy agreement.
The Different Types of Bankruptcy
There are several different types of bankruptcy you can file, but there are three that are more common. First, and arguably the most well-known, is Chapter 7 bankruptcy. In Chapter 7 bankruptcy, you liquidate and sell your valuable assets so you can repay your debts.
However, in Chapter 7, you do have the option of retaining certain assets if you are able to get current on your loan and continue making payments until you’ve paid off the loan.
There is also Chapter 11 and Chapter 13 bankruptcy. Chapter 11 is for business owners, and Chapter 13 is for non-business owners, but the process and details are more or less the same.
Individuals who want to retain possession of their belongings, and business owners who want to stay in business and remain open, will formulate a plan of reorganization so they can pay back their creditors, usually within five years.
What Happens Once You’ve Met Your Financial Obligations
For Chapter 7 declarations, once your non-exempt assets have been sold, any remaining debts you have will be discharged and your bankruptcy case will be closed. In Chapter 11 and Chapter 13, your case will be closed once you have paid off your debts as described in your plan of reorganization.
If, at any point, you are struggling to meet your financial obligations, you should speak with your attorney to determine whether you are entitled to a hardship discharge.
Get Help from an Experienced Bankruptcy Attorney in Indiana
To learn more about the bankruptcy process and how it will influence your assets, and your life, speak with a qualified Indiana bankruptcy lawyer at Rowdy G. Williams Law Firm. You can give our office a call at 1-812-232-7400 or submit the quick contact form at the bottom of this page to schedule your free consultation.