If you have been struggling financially and you have come to the conclusion that your financial situation is not going to get any better, you may have decided that filing for Chapter 7 bankruptcy is your only solution to get you out of the river of debt that is causing you and your family to drown. Although you may feel that the situation is dire, if you look at it from a different perspective, it may be your chance to start over and build your life again.
At this point, you may be wondering how much money is involved in filing for bankruptcy considering that you really don’t have much. If you decide to file for Chapter 7 bankruptcy in Indiana, it will cost approximately $300 for the filing fee. On the other hand, if you are not able to afford it, there is a fee waiver available. If you meet the criteria, your fee will be waived. Another option is that you pay the filing fee on a payment plan.
Why should I file for bankruptcy?
First of all, as soon as you file for bankruptcy, if you had creditors after you who were harassing you for the money that you owe them, the harassment will stop because the creditors are not allowed to harass you once you have declared bankruptcy. This will give you extra time to get your finances in order so that you can either pay your debts in installments, repay your debts or get your debts dismissed entirely.
It is a good possibility that once you are no longer under bankruptcy protection, you may be able to walk away with little or no debts at all. If that happens, it will be much easier for you to look forward to a brighter future without the tremendous burden that you had been experiencing previously. Additionally, it is also a possibility that you will not have lost all of your property during the bankruptcy process.
If I file for Chapter 7, will all of my debts be forgiven?
When it comes to bankruptcy, there are secured and unsecured debts. Unsecured debts are those debts in which you owe money to a person or to a business and they are not able to take your property if you don’t pay them. Examples of unsecured debts are credit card bills that you haven’t paid, medical bills and court judgments.
Secured debts are debts in which the creditor is allowed to take your property if you fail to pay the debt. An example of a secured debt is one that was created by a loan agreement. Mortgages and car loans are common examples of secured debts.
Once you have decided to declare Chapter 7 bankruptcy, the experienced advice of an Indiana bankruptcy attorney may really make a tremendous difference in your case.