Should You File Chapter 7 Bankruptcy in Indianapolis, IN or Chapter 13?

February, 2014 by Alma Abell

A lot of people consider filing bankruptcy to be an opportunity to press the reset button on the financial aspects of their life. It is a chance to erase the mistakes you’ve made and the debt you’ve accrued so that you can start over. It is important for you to acknowledge that filing bankruptcy is not a fast and/or easy process. It is a process that takes several months and a lot of paperwork. Most people end up hiring a law firm such as to help with the process just because of how complicated it is.

When you hire a lawyer to assist in the process, the first thing they are going to help you with is figure out whether you are filing Chapter 7 Bankruptcy in Indianapolis, IN or Chapter 13. Technically, there are several other chapters of bankruptcy; however, these are the only two that consumers ever really file. Chapter 7 Bankruptcy in Indianapolis, IN is also known as liquidation bankruptcy. When you file Chapter 7 it is going to wipe away most of your debts with the exception of any secured debts or things such as child support and spousal support. In exchange for wiping your credit clean, the bankruptcy court is going to seize some of your valuable assets including homes or vehicles you might own in order to liquidate them and repay some of the debts that you owed.

Chapter 13 is also commonly referred to as reorganization bankruptcy. This is a bankruptcy for people who do not have enough debt to quality for Chapter 7 or who do not want to file Chapter 7 because they do not want to lose any of their assets or property. When you file Chapter 13 you are going to get put on a 3 to 5 year payment plan so you can pay back all of your debt without getting harassing phone calls or letters anymore. As long as you pay all of your debt off and stay on the payment schedule, you would not have to worry about any of the debt collectors contacting you or garnishing your wages.




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