Your life may have been going along well, your income may have been steady and you and your spouse were able to save money every month that you intended to use many years in the future when you retire. However, at times, life hands you things that you couldn’t possibly have anticipated. Now you find yourself in a situation where you just don’t have the money to live as you used to (and as you should). You can’t think of very many options to get out of the mess that you are in.
One option that you either may not have investigated is Chapter 7 bankruptcy. Many people are intimidated by the prospect, thinking it means giving up. The opposite is true. Instead of your life being over if you have to declare bankruptcy, you should consider it a fresh start. You will be able to get rid of the debt in which you are drowning and start over with a clean slate.
Is Chapter 7 bankruptcy right for you?
If you are declaring personal bankruptcy, Chapter 7 is for you. Chapter 7 is also called liquidation bankruptcy because this type of bankruptcy demands that you turn over to a court-appointed trustee all of your remaining assets that are not protected by an exemption. Once that happens, the trustee will sell your assets so that your creditors can be paid. The happy consequence of doing that is the court will most likely forgive all or most of your debts. Additionally, to qualify for Chapter 7, your income must be below a certain number.
It is important to understand that as soon as you file for bankruptcy, your creditors will no longer be allowed to approach you about paying your debts to them. That is not great from the creditor’s perspective but it certainly takes a lot of pressure off of you. That means no more harassing phone calls, letters, etc. If any of your creditors violates that and tries to approach you, they will have to deal with consequences.
Consulting an Indiana bankruptcy lawyer
If you are in a financial situation and you cannot get out from under it, the advice of a bankruptcy lawyer may make a tremendous difference in your case. Your lawyer can help you to figure out if Chapter 7 bankruptcy is right for your situation and then they can walk you through the process and make sure that you protect your rights at the same time. It is important to understand that bankruptcy is not the end. It is a new beginning and you can emerge with hope for the future and a new lease on life.
