Bankruptcy in Evansville, IN
Are you contemplating bankruptcy or hiring a bankruptcy attorney in Evansville, Indiana? Are you tired of creditors calling for payments you can’t make? Maybe looking for a way to get out of debt and have you exhausted all other options? Then bankruptcy might be the solution you seek. It is a legal option that can erase a portion or all of your debts.
Types of Bankruptcy in Evansville, Indiana
Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. To receive approval in Evansville, IN, individuals must prove they have a financial hardship. Keep in mind that not all debts qualify. Some liabilities do not qualify, such as child support arrears, delinquent taxes, alimony, and student loans. Consumers who find themselves falling behind in debt can file either Chapter 7, 11, or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.
If you need to file for bankruptcy in Evansville, you will have to appear before the U.S. Bankruptcy Court for the Southern District of Indiana.
Chapter 7 Bankruptcy
Many people choose Chapter 7 because it provides the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in Evansville who can help you to decide if a liquidation plan is right for you.
Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car, or some other assets. However, once you file your petition, an automatic stay goes into effect that requires all collection activity to stop. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.
Evansville residents who file for chapter 7 should be aware that a stay follows the local rules for U.S. Courts. In fact, once a notice of bankruptcy goes to a creditor, they must cease and desist any type of collection efforts by law. However, you should be aware that creditors are able to petition the courts to have this stay waived. You’ll also have to pass a means test and complete credit counseling for chapter 7.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan. This makes payments easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to cover what they owe. It does allow debtors to negotiate a reorganization plan that enables them to stay current on their debts moving forward.
Chapter 11 is generally used by businesses that are attempting to restructure their debt. In addition, Evansville residents attempting to file chapter 11 will need to file chapter 11 forms for the local municipality. These include a restructuring plan, a ballot report form, and operating forms.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is a debt restructuring or wage earners plan. In Evansville, IN after you file, the courts will assign a trustee to examine your liabilities and assets and ability to pay bills. Unlike other types of bankruptcy, Chapter 13 involves you restructuring your debt with a three to a five-year repayment plan. The flexibility of this repayment plan will depend on what property you want to keep and how steady your income is. It may also give you the opportunity to have some or most of your debts discharged.
According to Indiana Bankruptcy Law, if you are behind in your mortgage payments, filing Chapter 13 is the only way to keep your property. You can also file for chapter 13 in order to receive protections while you pay back taxes, or stop interest from accruing on your tax debt. However, you have to present a repayment plan, including a schedule of repayment, to the court. The timeline for repayment under Chapter 13 is generally between 3 and 5 years.
The Bankruptcy Process in Evansville, Indiana
There is never an ideal time to declare bankruptcy. However, if you are unable to pay off what you owe within five years, filing for bankruptcy can help you to lessen the negative impact.
In Evansville to begin the filing process, gather your financial records. The documents should include monthly expenses, debts, assets, and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in a denial of your petition.
If you are facing tremendous debt in Evansville, you must first determine if bankruptcy can help you, as well as what type of bankruptcy you need to file. Once you’ve determined this, you must then begin the filing process, pay all applicable filing fees, and then refrain from paying creditors any further.
There are several exemptions that you can use to your benefit, according to the Indiana Bankruptcy Statutes. You can exempt equity in your residence up to $19,300. Benefits such as pensions, insurance, and workers’ compensation have protections. In addition, Indiana has a wildcard exemption in place for personal property up to $10,250. Indiana has no specific exemption for motor vehicles, but you can use the wildcard exemption to protect your vehicle if you desire.
At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone. Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate of completion from the credit counseling course that you took, the courts will reject your bankruptcy petition.
Work With an Experienced Evansville, Indiana Lawyer
Hiring a local bankruptcy lawyer in Evansville during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case, especially which debts can discharge. An experienced Indiana attorney can also offer you guidance to improve the outcome of your case.
Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in Evansville can guide you through the entire bankruptcy process. We can even help you connect with an attorney across Indiana state lines.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!
