Indiana residents experiencing financial hardship may hesitate to seek relief because of common myths about bankruptcy. Many mistakenly believe that the process means they will never receive another loan or credit card. While it remains on record for up to 10 years, applying for credit cards and a personal or auto loan is not impossible.
Many petitioners have repaired their credit rating a few years after a federal judge discharged their bankruptcy. Individuals applying for a secured credit card may help rebuild their borrower’s profile, as reported by Bankrate. By providing a deposit in exchange for a secured card, an individual may increase his or her credit rating by making payments on time.
Keeping a home or primary residence
The Hoosier State’s bankruptcy laws generally allow individuals to keep their homes. Many families continue living in the house they relied upon as a longtime primary residence. A second or vacation home, however, may require filing for an exemption. When real property has available equity, a petitioner may need to access some of it to pay his or her creditors.
Hanging on to a car used for work
Almost everyone needs a car to get to work, and bankruptcy does not consign an individual to using public transportation as some may imagine. Although Indiana law does not provide a specific exemption to enable individuals to keep their vehicles, there is a way that petitioners may keep their cars.
Indiana law provides a bankruptcy “wildcard” exemption. This generally means that a petitioner may decide to keep any property or asset worth up to $10,250. If an individual has a higher auto loan value, however, he or she may need to discuss refinancing options with the loan provider.
Filing for a personal bankruptcy
For many individuals, bankruptcy may serve as a means to rearrange their unmanageable debts and come out of it with a chance to start over again. Despite the erroneous belief of losing everything through bankruptcy, many petitioners keep some of their most cherished possessions.