If your financial situation is dire, you may be thinking of seeking to file bankruptcy. This is a legal mechanism in which you basically ask the courts to discharge your debts in return for your agreeing to give up any assets that you may have other than those that are specifically legally exempt. It can be an excellent tool for someone who owes a lot and has little to lose, but it is important to understand exactly what you are getting into before you move forward with filing Chapter 7 Bankruptcy Indianapolis IN.
For most people, there is no meaningful issue with surrendering assets. In fact, people who file Chapter 7 often end up not having to give up anything at all because what little they have is exempt. Pensions and other types of retirement funds are generally exempt, for example. A portion of the equity that you hold in a home can also be exempted. Keep in mind, however, that Chapter 7 bankruptcy does not override a creditor’s right to foreclose on a home, automobile, or other property that was used to secure a loan. If you have something significant like this that you want to keep and you are behind in the payments, this is not the right approach for you.
Once the process is over, you can keep whatever assets it left you with. For a period of 180 afterward, getting something like an inheritance or insurance benefit can mean that you will be obligated to pay that money to your creditors. You will also be able to move forward with the comfort of knowing that you have less debt than before, or perhaps even none at all. If you owed money for things like child support, alimony, taxes, or student loans, it is very likely that you will still be obligated to pay.
To really make the right choice about declaring Chapter 7 Bankruptcy Indianapolis IN, you need to sit down and assess what you have and which things will be exempted. It is likely that you wouldn’t have to give up any assets at all but that is not guaranteed. You can contact a lawyer who can walk you through the details at visit us website.
