Bankruptcy in Brownsburg, IN is a legal means of relieving debt. Sometimes debts can get overwhelming and there is no other way out. New bankruptcy laws passed in 2005 make filing more complicated. The new laws were made to protect creditors because many debtors took advantage of credit. All debtors must now take credit counselling after they file. The credit counselling may take several weeks to complete and it is given by an agency approved by the government. Though you may choose the type of bankruptcy, it doesn’t mean you are eligible. Courts use a means test to determine your eligibility.
There are several kinds of bankruptcy. Chapter 7 is the most common type of bankruptcy. It is known as liquidation. Under Chapter 7, you won’t be required to pay creditors. Some of your assets will be sold to pay the debt. A trustee handles the sell of these items. However, if the court determines you have adequate income, you can’t file Chapter 7. You can determine if you are eligible for Chapter 7 before you file. Figure your disposable income and compare it to the average for a household of your size in our state. Allowed expenses may include mortgage, clothing, and food. You can get a full list of allowed expenses from the IRS. Disposable income should be no more than $166.
You must file Chapter 13 if you have more than $166 in disposable income. Chapter 13 is known as reconstruction bankruptcy. Under Chapter 13, you have the chance to pay creditors with a plan devised by the court. This plan helps you pay off debt in three to five years. You do not have to sell your house with Chapter 13 so you can avoid foreclosure. Chapter 13 bankruptcy is suitable for businesses or anyone with a desire to pay creditors , but are face financial difficulties.
If you are for certain there is no other option to get out of debt, you can consider filing Bankruptcy in Brownsburg, IN. You are advised to get an attorney since proceeding can be complex. In the end, you are discharged from debt and will be able to make a new start. The Wright Law Group, LLC will be glad to help you.