Some of the things that debtors have to put up with is receiving many calls from their creditors threatening them to take strict measures against them if they do not pay up their debts in full. People get credit from others or institutions with the intention of investing the money and pay up their debts of the profit they make. However, many are times when things don’t turn out as planned, and they are left with debts that they are unable to pay. When this happens, you can always file for bankruptcy with the help of bankruptcy lawyers Ft Wayne IN. Before you do so, there are things that you should know about filing for bankruptcy.
Understanding the consumer bankruptcy types
There are two types of bankruptcy you can file under: chapter 13 and chapter 7. They are different, and you should choose the one that best suits your situation.
In chapter 7, any unsecured debt is canceled. However, unsecured property is liquefied, and the money used to pay off your creditors even if not in full amount. You are allowed to keep all your secured property with no future threat of losing them to the creditors.
Chapter 13 is commonly known as the reorganization chapter. In this chapter, you stand at no risk of losing any of your properties. However, with the help of your lawyer, you must come up with a plan of how you will pay your creditors without failing.
Do not be too quick to file for bankruptcy
Filing for bankruptcy may seem to be the only solution to get out of your current situation. However, remember that you can only file for bankruptcy once every six years so if you are not in a very tight situation wait a little longer before you file. But, you should not take too long to lose your property to your creditors. Your lawyer will guide you as to when is the right time to file for bankruptcy.
Remember, filing for bankruptcy stays on your record for ten years. Creditors will be reluctant to lend your money for fear you might fail to refund it. For more information on bankruptcy, contact Lawyers Ft Wayne IN or visit the website.
