If you’re worried about your debt and in danger of foreclosure on your home, you should consult with a bankruptcy lawyer in Indianapolis to see if bankruptcy is a feasible option for you. In many cases, a person’s primary residence is considered an “exempt asset”. Exempt assets have some protections under bankruptcy laws and typically consist of your primary residence and your primary vehicle.
These “exempt” assets are not included in the list of assets that can be sold to pay back your debt. However, since they are secured debts, your creditor technically has the right to foreclose on the home if the debt isn’t paid. When you file for bankruptcy, the foreclosure proceedings are halted, and you are given the opportunity to restructure the debt on your home. A bankruptcy attorney in Indianapolis will help you negotiate with your creditor so that the amount you have to pay back is one that you can afford.
If you’re filing for Chapter 7 bankruptcy, typically all of your assets except for your primary vehicle and primary residence are seized and sold to pay off your debt. If you would like to keep your house, you must “reaffirm your debt.” This essentially means that you need to renegotiate your mortgage debt with your creditor and it’s typically recommended that you use a bankruptcy lawyer in Indianapolis to assist you with this process.
If you’re filing for Chapter 13 bankruptcy, your assets are typically not sold to help pay off your debt. Your bankruptcy lawyer in Indianapolis will develop a list of all of your debts and negotiate with creditors to reduce the total amount to be paid .The total sum of your outstanding debt is then restructured into one monthly payment over a period of 3 to 5 years. The bankruptcy court determines the amount to be paid, based on your income related to the total debt amount owed.
Regardless of which type of bankruptcy you’re filing for, the bankruptcy process halts the proceedings related to foreclosure on your home and gives you the opportunity to take a break from the constant calls and threats from creditors. When you work with a bankruptcy lawyer in Indianapolis, the collection process for any of your debts, including credit cards, personal loans or other properties effectively grinds to a halt.
The biggest mistake most people make when filing for bankruptcy is the failure to contact a n attorney. When you file for bankruptcy on your own, without assistance from an attorney, you typically lose the ability to negotiate a reduced debt amount. So, hiring a bankruptcy attorney in Indianapolis to represent you will actually pay for itself in the long run.
Consult one of the popular bankruptcy lawyer Indianapolis extensive experience helping homeowners file for both Chapter 7 and Chapter 13 bankruptcy. For more information, please contact Darrell J. Dolan
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