Financial hardships can be one of the greatest burdens a person will have to carry. It is a sad reality that since the economic collapse, many people have found it all but impossible to successfully balance their finances. Whether it is from an inability to find steady work or to find well paying full-time work, once the debts start mounting it can be easy for a person to start to panic. Fortunately, for people needing a Bankruptcy Attorney in Indianapolis, IN. The Wright Law Group has years of experience protecting clients from creditors.
Before filling for bankruptcy, it is important to understand the different types of bankruptcy. Chapter 7 and Chapter 13 are the two most commonly used bankruptcy chapters for individuals. While there are many differences between these two categories, it is important to note that both will stop creditors from continuing any collection actions against you.
One of the main differences relates to the liquidation of possessions. Under a Chapter 7 filing, the assets of the individual are sold off to raise money for repayment of creditors. However, individuals do not have to worry about losing all of their possessions. Certain items are exempt from liquidation. After all, the purpose of a bankruptcy is to grant an individual a fresh financial start.
Under a Chapter 13 filing, an individual’s possessions are not liquidated. Rather, the debts are reorganized to allow for gradual repayment. Interestingly, this form of bankruptcy was designed to protect wage earners. Often, for people earning salaries or hourly wages, it would be impossible for the debts to be repaid immediately. This type of filing allows the creditor to be repaid, but it protects the assets of the debtor. For more information about Chapter 7 and Chapter 13 filings, visit us website.
While a bankruptcy can grant an individual a fresh start, it is important to have the guidance of an experienced attorney. Fortunately, there is a Bankruptcy Attorney in Indianapolis, IN with years of experience helping clients get a fresh start. The Wright Law Group LLC offers compassionate and aggressive representation to ensure their clients are protected from harassing collection actions.
