Americans who have worked all of their life and been responsible people can easily fall on hard economic times. Many people are only one or two paychecks away from financial disaster. When an unexpected illness or job loss strikes, then can quickly fall behind on their monthly payments. Unfortunately many people are too ashamed to admit what is happening and may lose their homes because of it. Once a person realizes that they can’t meet their financial obligations, they should contact a Bankruptcy Attorney in Indianapolis, IN to protect their assets and credit rating as much as possible.
If a person makes less than the median income for the state of Indiana, then they automatically qualify to use the Chapter 7 bankruptcy process. This is a federal law and therefore the matter is handled by a federal judge. He appoints a bankruptcy trustee who will determine what assets the debtor has to sell. The proceeds from these sales will be given divided among the creditors. Whatever debts remain will be discharged. State and federal law limits what the trustee may sell. Often the debtor’s house, car, clothing and the equipment they need to make a living are protected. The Bankruptcy Attorney in Indianapolis, IN will carefully monitor the trustee to make sure they only sell the appropriate assets.
Federal law requires those people who have more assets and income to attempt to pay back the debt. They must use Chapter 13 of the bankruptcy law. The judge appoints a trustee that will review the debtor’s monthly bills and establish a budget that they must live within. Everything above that amount is paid to the trustee who in turn pays the creditors. This budgeting and reorganization can continue for up to five years. After that time, the remaining debt is forgiven. Debtors and their lawyer have to make sure that this is a liable budget. If the debtor does not complete the entire time period as determined by the judge, the remaining debt will not be discharged.
Debtors can visit us website to learn more about the their rights and the Federal bankruptcy law. They can then more easily prepare to speak with an attorney.
