Are you constantly burdened by unpaid debts? Are you struggling to make ends meet despite working diligently to earn as much money as possible? If so, declaring bankruptcy may be the next best option for you.
Read on to learn more about the different types of bankruptcy and which one may be the right fit for you to clear your financial slate.
Declaring Chapter 7 Bankruptcy
Chapter 7 bankruptcy is the one that everyone thinks of when they hear the word bankruptcy. When you declare Chapter 7 bankruptcy, your assets will be sold and the profits from this sale will then be used to repay your creditors. From there, any remaining debts will be discharged and you will officially be debt free.
However, it is important to note that relatively few debtors will qualify for Chapter 7, and those who do are living at or below the federal poverty level. You can check with your bankruptcy attorney to determine whether you meet the Chapter 7 eligibility requirements.
Who Qualities for Chapter 13?
Chapter 13 bankruptcy is also referred to as wage-earner’s bankruptcy because those who work will generally be able to afford to repay a portion of their debt through a plan of reorganization. Those who live above the federal poverty level and have less than approximately $395,000 in debt will qualify for Chapter 13 bankruptcy.
You will work with your attorney and your creditors to formulate a repayment plan that typically spans three to five years, and in some cases your creditors may be willing to settle your debts for a fraction of the total amount owed. Once you meet the terms of your reorganization plan, your remaining debt will be discharged and you’ll officially be debt-free.
Bankruptcy for Business Owners: Chapter 11
Consider Chapter 11 bankruptcy the bankruptcy plan for business owners. It doesn’t matter whether you own a small business or a large corporation, business owners who want to keep their doors open will often declare Chapter 11.
Chapter 11 bankruptcy works very similar to Chapter 13 in that the business owner will formulate a plan to pay off their debts over a period of time. Once the creditors are satisfied and the terms of your repayment plan have been met, debts are discharged and your bankruptcy petition will be resolved.
Get Help from an Indiana Bankruptcy Attorney
Those who struggle financially often find it difficult to get out of debt and back on their feet. But declaring bankruptcy could be the right choice for you and lead you on the path toward financial freedom.
Reach out to a qualified Indiana bankruptcy lawyer at Rowdy G. Williams Law Firm for help with your bankruptcy petition. You can schedule a free, no-obligation consultation at our office by filling out the quick contact form located at the bottom of this page or calling us at 1-812-232-7400.