When an individual must file for bankruptcy, there are certain requirements that must be met and they will have to see if they qualify for either Chapter 7 or Chapter 13 bankruptcy. The easiest way for you to find out which one would work for your circumstances is by working with a bankruptcy attorney in Sullivan Indiana. Your bankruptcy attorney will look through your finances to determine which chapter you should file for.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy usually takes about six months or less. You will give your assets to a trustee who will then sell them, usually though auctions, and use the money to pay for your debts. This can be a way to easily pay off your debts if you cannot afford to make payments, and it will allow you to keep those assets that are exempt, such as your home.
Chapter 13 Bankruptcy
If you do not qualify for a Chapter 7 bankruptcy, you can instead file for Chapter 13. With this, your debts will be reconsolidated into one large debt, which you will pay off monthly. This can last up to five years, and at the end of that time you will be free from your debts. This is helpful for those who can afford monthly payments, but have too large of payments without consolidating their debts.
Your attorney will make the decision of which chapter you qualify for based on your income, your assets, your expenses and any other financial information you have. You will need to bring your bank statements, copies of the debts you own, and your income statements with you when you speak with a bankruptcy attorney in Sullivan Indiana. Your attorney will also stop your creditors from foreclosing on your home, taking your assets to cover a debt, or garnishing your wages while the bankruptcy is in progress. They will also handle any calls from debt collectors so that you won’t have to worry about them.
If you’re interested in learning more about how bankruptcy may be able to help you get your finances back under control and relieve you of your debts, visit the websites of bankruptcy attorneys such as Feavel-Law.com. You’ll be able to get all the information you need to find out if you want to try to file for bankruptcy and find an attorney to help you.