Filing for bankruptcy can be a very stressful process. Bankruptcy is a legal process in which an individual has to prove to the court that they are no longer able to pay their creditors the money owed. During this process, there are a lot of legal documents and regulations that must be followed. To ensure you stay within the law, you will need the help of Bankruptcy Lawyers Fort Wayne IN. They are competent individuals who can legally advise and represent their clients during the process.
Understanding the Bankruptcy Code
The rules and guidelines that govern these processes are known as the bankruptcy code. Under this code, there five processes in which a person may file for bankruptcy but most will opt for Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 is also known as liquidation. During this process, an appointed court trustee accounts for any assets a debtor may have and converts them into cash value. The cash is then distributed amongst the creditors, and the rest of the debt is discharged.
Chapter 13 is called Adjustment of Debts of an Individual with Regular Income. This is mainly used by people with a regular income or under full-time employment. During this process, the court allows the debtor to write a payment plan. This gives the debtor more time to repay their loans allowing them to keep their assets. Visit Ripke Law PC for more details.
Why you need a lawyer
As with any legal process, it is best to seek help from those experienced with such cases. A lawyer will guide you through this very complex process as there are a lot of documents needed no matter what bankruptcy option you use. To prove you can no longer make repayments, you will need to provide the court with proof of your income and expenditure. This will require you to show your bank records, pay slips, any rental agreements, and other proof of income and expenditure. A lawyer can help you arrange yourself accordingly. You will also need to know what types of debts are exempt from discharge by the court, a good examples are student loans and child support.
If you want to file for bankruptcy, it is best you seek advice from Bankruptcy attorney in Fort Wayne IN. They are highly competent professionals who can help you get a new start financially. Visit to find such individuals.
