Debt is easy to accumulate, but it can be hard to pay off. When you get into a financial situation you see no way out of, one option is bankruptcy in Avon, IN. Bankruptcy in Avon, IN is a legal procedure that legally allows you to erase debts. After the procedure, you receive a discharge clearing you from debts. Many consumers use it to give them a fresh start. Filing bankruptcy has the advantage of stopping creditors from harassing you. Once you file, the creditors have no legal options but to stop calling you. They may not seek further collection action or sue you over debt.
New bankruptcy laws make the procedure more complicated. The laws passed in 2005 require debtors must undergo financial counseling before they file and after the discharge. Since bankruptcy laws are complex, it helps to know what you are getting into. You will find you can choose to file several kinds of bankruptcy. The most chosen kind of bankruptcy is Chapter 7.
Chapter 7 is commonly chosen because debtors can get their discharge in four to six months. Chapter 7 also relieves you completely from paying creditors. The new rules state debtors must meet the income guidelines outlined in the Means Test before being accepted for Chapter 7. Non-exempt assets must be sold which may include collections, second vehicles or houses, and other valuable items.
A trustee handles the sell of assets and uses the money as payment toward creditors. Debtors who do not meet the income requirements of Chapter 7 have to file Chapter 13 bankruptcy. Chapter 13 is a way for you to repay creditors that will not impact your credit like Chapter 7. The courts devise a new payment plan you can afford. If your home is in danger of foreclosure or you have co-signers on loans, Chapter 13 is ideal. Co-signers can still be responsible for debt even when you have been discharged. You will not lose your home nor do you have to sell other assets under Chapter 13.
It is strongly advised that you hire a bankruptcy attorney from The Wright Law Group of Indianapolis. A bankruptcy attorney can make certain the procedure goes smoothly and creditors follow the laws. Your life will be much simpler without debt.
