Life can be challenging and expensive. Sometimes, your debts get out of control. You find yourself in a position of having few options to resolve those debts and get out from under them so that you can live your life again without the financial stress that you are experiencing day and night.
Americans across the country are experiencing several different types of debt and Indiana is not exempt from the challenges of navigating through the financial hardships and trying to figure out what is best for you.
Choosing to file for Chapter 7 bankruptcy in Indiana
Before you file for Chapter 7 bankruptcy in Indiana, there are some things that you will need to establish. They are:
- Are you qualified to file for Chapter 7 bankruptcy and what will it cost you to file?
- Is there an alternative to Chapter 7 bankruptcy that will help you to get out of debt?
- What are the specific conditions of Chapter 7 bankruptcy in Indiana?
Chapter 7 bankruptcy is the type of bankruptcy that American people choose most often across the country to get out of insurmountable debt. State financial reports for 2021 showed that there were 15,791 bankruptcies filed and most likely, the majority of those filed were Chapter 7 filings.
How does Chapter 7 work in Indiana?
People who are facing financial challenges have many concerns but some are more serious than others. The two main concerns are how quickly the person can get out from under their debt and how much it will cost the person to get out of debt.
Resolving your debt in a timely manner: In Indiana, you may be able to resolve your debt in as few as 120 days. That is considering that you have no assets at that point. That would mean that you don’t own your home or any other large assets that are valued above what are considered bankruptcy exemptions in Indiana.
Determining the cost to file for Chapter 7 bankruptcy in Indiana: To file for Chapter 7 in Indiana is not the same as in the rest of the country. In fact, the cost may vary from one part of the state to the next. Part of what you will be responsible for paying is the bankruptcy attorney fee, which will also vary, depending on exactly where you are in Indiana.
Qualifying for Chapter 7 bankruptcy in Indiana
If you are filing for Chapter 7, that means that you don’t have the means to pay off any portion of your debt. However, you must pass a means test to qualify. If you pass that test, most, if not all, of your debt may be canceled. Some types of debt, such as income tax debts, child support arrears, alimony and student loans, may not be discharged through Chapter 7 bankruptcy. On the other hand, most types of debt, such as credit card balances, car loans, mortgages and medical bills are eligible for discharge under Chapter 7.
Chapter 13: an alternative to Chapter 7
A Chapter 13 repayment plan may be an alternative to Chapter 7 in case you don’t qualify.
- Chapter 13: If your income is above the limit for Chapter 7 bankruptcy, you may be able to file for Chapter 13 bankruptcy. That type of bankruptcy can resolve your owed mortgage payments, overdue car payments, and other debt over a time period of three to five years according to a schedule that you set up through your bankruptcy plan. Additionally, in Indiana, you may be able to get a reduction in the amount of child support that you have to pay as well.
Get support from a bankruptcy attorney
If you find yourself struggling with overwhelming debt in Indiana, the advice of an experienced bankruptcy attorney may help a great deal. You shouldn’t look at bankruptcy as a failure. You should consider it a way to ease your tremendous financial burden. Bankruptcy can help you to regain freedom from your financial woes so that you can look forward to a brighter future.