Bankruptcy can legally dissolve your unsecured debt, meaning that you don’t have to pay it back and the creditor cannot sue you, call you or make any other effort to collect the debt. There are drawbacks to Filing Bankruptcy in Plainflield IN that you should know about before you decide to stop paying your credit card bills. Consider these five things before you talk to a lawyer.
* Some debts cannot be discharged. Family support obligations such as child support and alimony will continue after your bankruptcy. Unless you can prove that paying your student loans creates an undue hardship, you will also have to repay the money you borrowed to go to college.
* You may be forced to sell some of your assets. You may be able to keep your personal vehicle, your household furniture and clothing but there are dollar limits to the exemptions.
* When you have your debts discharged through Chapter 7 bankruptcy, a notation will remain on your credit report for 10 years. During that time, if you apply for a loan or a credit card, get a quote for car insurance or fill out a job application, you will be letting people know you filed for bankruptcy.
* Bankruptcy is not free. You may have to pay more than $1,000 in legal fees.
There are definite benefits to Filing Bankruptcy in Plainflield IN. Creditors are required by law to cease contacting you about your debts as soon as your paperwork is filed. Though the courts will notify each creditor individually within a few weeks of your filing, you can tell them yourself if they call you at home or work. During the automatic stay, many people who have been struggling with debt for years are able to think clearly and devise a financial plan for their future.
If you have more debt than you can handle and would like to learn more about how you can have your debts legally erased, contact an attorney that focuses on bankruptcy law, such as The Wright Law Group of Indianapolis. Your attorney will guide and advise you throughout the process and help you on your way to a more stable financial life.