The decision to file a Chapter 7 Bankruptcy in Indianapolis IN, is never something that should be considered without weighing all the factors first. Many attorneys will counsel their clients first and help them determine if this is a step they want to pursue. Here are some examples of questions that are likely to come up during the process.
Are Any Debts in Arrears?
When current debts are way behind, and legal action is being threatened, it makes sense to consider the idea of filing for a Chapter 7 Bankruptcy in Indianapolis IN. This is especially true when the debtor has already attempted to negotiate alternative terms with the creditors and they are not willing to accept what he or she is capable of providing. Even if the debts are current, but the debtor knows that some impending event like a job loss will make it impossible to keep paying on those debts, it is worth the time and effort to talk with an attorney about filing for bankruptcy. The attorney can provide some guidance as to what to try first, and when bankruptcy would become a viable option.
Can the Client Meet the Qualifications for a Chapter 7 Bankruptcy Action?
Depending on the financial circumstances of the client, he or she may not meet the minimum qualifications that apply to a Chapter 7 bankruptcy action. When this happens to hold true, the attorney can discuss other legal means of working out settlements, especially in terms of filing for Chapter 13 bankruptcy protection.
Does the Client Understand That Some Assets May Be Sold to Settle Part of the Debt?
Before any portion of the debt is dismissed, the court will appoint a trustee who will look into the financial status of the debtor. While many assets will be considered exempt from sale, other assets the court deems as not being necessary to maintaining a reasonable standard of living may be sold and the funds distributed to creditors. Before deciding bankruptcy is the only option, Contact The Wright Law Group of Indianapolis and schedule a consultation. After going over the details, the attorney can provide advice on how to proceed. In the best case scenario, it will be possible to obtain protection from the courts and have the chance to start with a clean slate.