When debt get out of control, and there is no other option than to throw in the towel, it’s time to talk to an attorney. Crippling debt is a problem many people face today. It’s best to try to work something out, like a payment plan or working with a debt consolidation service. Bankruptcy should be an absolute last resort. Filing chapter 7 or chapter 13 has a huge impact on a person’s future. These two chapters have the same outcome, but they work in very different ways. Chapter 7 bankruptcy is known as liquidation bankruptcy. The debts a person owes will be canceled, but the debtor must liquidate all non-exempt property in order to recover as much of the debt as possible. Chapter 13 is a repayment plan that is enforced by a court. If the debtor fails to meet their payment plan obligations, they could face fines and jail time.
The first thing a debtor should do is to contact a Bankruptcy Attorney in Indianapolis IN. The debtor will have to take the Means Test in order to determine if they are eligible for bankruptcy. If they qualify, the debtor will need to complete a credit counseling course. A certificate of completion is required as part of the initial paperwork. Once the initial paperwork is submitted, there is a period of two weeks to two months before a judgment is made on the application. If the application is approved the debtor will be able to enjoy a stay of action.
Anyone who feels that they have no other option than to file for bankruptcy should contact a Bankruptcy Attorney in Indianapolis IN, right away. It’s important that action is taken quickly in order to secure a stay of action before any legal action is taken. A stay of action stops any new action, but does not dismiss any pending action. If a debtor has a lawyer, they should Contact them right away for advice and help with the filing process. Taking action right away is the best way to assure the best possible outcome no matter what chapter the debtor qualifies for.