Handling an enormous amount of debt when you simply don’t have the income necessary to make payments can be a struggle when you’re already having difficulty supporting yourself. A qualified Terre Haute bankruptcy attorney can help you take your first steps to financial freedom.
Anyone can end up in a position where you need to take a hard look at your financial situation and determine what the best course of action is as you attempt to move forward. Declaring bankruptcy can be a very useful tool that can allow you to be free of your debts and look toward a stronger financial future.
At Rowdy G. Williams Law Firm, we help our clients out of dire financial straits and into a better situation that can give them an opportunity to rebuild their credit and live a debt-free life. To get started, all you have to do is call a Terre Haute bankruptcy lawyer at our firm.
When Filing for Bankruptcy Is a Good Option
Declaring bankruptcy isn’t for everyone. A lot of people are concerned with how they’ll be perceived if they file. Unfortunately, too many people are being looked down on as financially irresponsible for needing to file for bankruptcy. What they don’t know is that the vast majority of debtors have fallen under financial hardship due to astronomical medical bills or other factors that are out of their control.
Choosing to declare bankruptcy is a difficult decision for anyone to make. It might be the right choice for you if you are currently living off of your credit cards or working multiple jobs in an attempt to pay your debts but aren’t making enough to continue to support yourself.
It could be better for you to cease payment on all debts that you don’t need to keep, continue paying things like your mortgage or car payment so you can retain those possessions, and hang on to the money you can so you are able to start saving again.
If you’re considering declaring any kind of bankruptcy, get in touch with a bankruptcy lawyer in Terre Haute.
Which Bankruptcy Declaration Is Right for Me?
There are multiple types of bankruptcy for individuals and business owners to consider. Chapter 7, Chapter 13, Chapter 11, Chapter 12, and Chapter 9 bankruptcy could apply to your situation. We discuss these option in detail below, but you can get personalized help if you call a bankruptcy attorney in Terre Haute.
Chapter 7 is probably most often thought of when discussions of bankruptcy come up. This is when the assets of the debtor are liquidated and sold by the assigned case trustee as a way to pay back creditors. Although each individual case is different, some items can be considered exempt and others nonexempt.
Exempt possessions are the ones you’ll be able to retain both during your case and after your bankruptcy case is closed. Nonexempt possessions will be sold by your trustee to pay creditors.
Although this option may be the most commonly thought of in terms of bankruptcy, it is actually relatively rare for a debtor to be eligible for Chapter 7 bankruptcy, and those who are are often living at or below the federal poverty income limitations of approximately $12,000 annually.
In Chapter 13 bankruptcy, the debtor structures a plan for repaying his or her creditors over a specified number of years (often between three and five) and is able to retain possession of belongings while making agreed-upon payments to creditors.
Once you have made all of the necessary payments, the courts will discharge your debts, your creditors will no longer be able to pursue debts against you, and your case will be closed.
This is the option most frequently used by business owners and large corporations. Chapter 11 is very similar to Chapter 13 in that the business owner will have the opportunity to form a plan of reorganization, which is essentially a repayment plan. This can allow you to keep the doors of your business open while you get your financial affairs in order.
Unlike Chapter 13, in a Chapter 11 bankruptcy case, the creditors will have the opportunity to vote on your proposed plan and even make their own proposals for your case. Chapter 11 bankruptcy can go on for a significant period of time due to these negotiations. The plan won’t go into effect until both parties can reach an agreement.
During the negotiation process, a qualified Terre Haute bankruptcy attorney can be particularly helpful.
A relatively new bankruptcy option, Chapter 12 works very much like Chapter 13 bankruptcy, except it is specifically designed for family farmers and fisherman. Very few people are eligible for Chapter 12 bankruptcy, but those who are need to have worked in commercial farming or fishing and have debts that can reach as high as roughly $4,000,000 for farmers and $1,900,000 for fishermen.
Fishermen and farmers will continue to work while their bankruptcy cases are resolved. With this option, a repayment plan is decided upon with a time frame not to exceed five years, and the debtor turns over all disposable income to a designated case trustee for dispersal to creditors.
Chapter 9 bankruptcy is only available to towns, counties, and other municipalities. The goal in Chapter 9 is to resolve the debts of the municipalities by negotiating an appropriate repayment plan that will allow the municipality an opportunity to thrive once again.
The Bankruptcy Process in Terre Haute
Although each type of bankruptcy will apply to different individuals and situations, the process of filing for bankruptcy is relatively similar throughout. To begin, once you declare, you will be required to submit a copy of your most recently filed tax return, a complete list (known as a disclosure statement) of all of your creditors, assets, and liabilities, and evidence of your income.
If you are married, even though you might be filing alone, your spouse will likely need to submit the same information so the courts have an overall idea of what your household’s finances are actually like.
Then, you and your bankruptcy lawyer in Terre Haute will need to work on your reorganization plan for repaying your creditors so you are able to retain possession of your belongings. This process could take some time—in some cases, your creditors will fight back against your proposed terms and make suggestions of their own. When we are able to come to an agreement, the contract will become binding and your debts will be discharged once you meet the obligatory payments as outlined in your plan.
If you’re filing for Chapter 7 bankruptcy and will have your assets liquidated and sold, the next step after submitting your disclosure statement will be working with your case trustee to assign your possessions and assets as exempt or nonexempt. That’s followed by a meeting of creditors, where you’ll be asked questions that pertain to your debts.
Contact a Terre Haute Bankruptcy Attorney
If you believe you might be a good candidate for declaring bankruptcy, get in touch with the legal team at Rowdy G. Williams Law Firm. We will be able to advise you about which option, if any, is the best one for you.
You can schedule your free, no-obligation consultation with a Terre Haute bankruptcy lawyer today by filling out the quick contact form at the bottom of the page or giving us a call at 1-812-232-7400.