In a perfect world we would all have plenty of money, to pay all of our bills without any problems. Knowing how to manage our money would be instinctive, so that no one would find themselves having money problems. However, that is not the world we live in, situations come up, and money is tight, and paying bills becomes more difficult. At that point coming up with solutions is important, and the only viable option may be Bankruptcy Indianapolis IN.
When you finally make the decision that bankruptcy is the only choice you have, then the next step you have is to decide between Chapter 7 and Chapter 13. Without having filed bankruptcy in the past, the difference between the two can be very confusing. To make the best decision for your situation you need to first understand the basic difference between them. Then with help from your attorney you will be able to make a choice.
Chapter 7 Bankruptcy Indianapolis IN, is where you state that you simply cannot pay back any debt that is owed. When it comes to your home and car, if you still owe money on them, you will need to either arrange to pay a lump sum in order to keep them, or you they will be returned back to the creditor. If you owe student loans, alimony or child support you are not able to file chapter 7 bankruptcy.
Chapter 13 Bankruptcy Indianapolis IN, is different than chapter 7, because you are able to keep your assets, as long as payment arrangements are made. One of the major differences is that you are able to work out; through the court; with your creditor that you have your house and automobile with, a payment plan, and you will be able to keep them. When it comes to student loans, alimony or child support, you are still permitted to file chapter 13. However, you are still responsible for paying those debts.
While these are two of many differences between chapter 7 and chapter 13 Bankruptcy Indianapolis IN, the determination of what to file is one that should not be taken lightly. By consulting with your bankruptcy attorney, you will be informed about the law, and where you fall based on your individual situation.