No one likes the thought of having to go bankrupt, and most often this is put off until the very last moment. There can be a lot of repercussions that come with waiting to file for bankruptcy too long. Of course you want to try everything possible to stay on top of your finances and meet your financial obligations.
Waiting Too Long Before Filing for Bankruptcy
Secured Debt vs Unsecured Debt in Bankruptcy
When individuals get into great financial difficulty one of the best options available to them is to consider going bankrupt. Once they do this the first step of course is to seek out the advice and help of an experienced Louisville bankruptcy attorney. During the bankruptcy process there will be many sectors of the bankruptcy proceedings that can be a little confusing.
Getting Rid of Credit Card Debt
he first thing you are going to discover when you go to file for bankruptcy in Louisville is that there are two major types. There is a Chapter 7 bankruptcy and a Chapter 13 bankruptcy, and it will have to be determined which one you are eligible for. Seeking out the services of a bankruptcy attorney is a wise move, as this professional can not only determine which bankruptcy you are going to be eligible for, but can take you through the entire process which will be much less stressful than doing it on your own.
Tax Debt in Chapter 13
There are all kinds of debts that can lead an individual into a situation where they have to claim bankruptcy. With there being two different forms of bankruptcy such as the Chapter 7 and Chapter 13 the first step is determining which bankruptcy that you are eligible for. Your Indiana bankruptcy attorney will be able to assist you with this as well as the entire proceedings that are going to be before you to bring your bankruptcy into discharge.
Personal Bankruptcy and Owning a Business
Many individuals that are going to file for personal bankruptcy are often business owners. They are concerned as to how their personal actions are going to affect their business in regards to the bankruptcy position.
Discharged Debt and your Taxes
Once your Bankruptcy has been completed you will no doubt breathe a sigh of relief that you are now back on track financially, and you know longer have to deal with creditors constantly badgering you. You have probably had some or all of your debt discharged and you are wondering how this relates to your federal income tax.
Bankruptcy and Payday Lending
Individuals that are going into bankruptcy come into this form of debt relief with all kinds of debt. Some have hit some unfortunate circumstances where they ended up with huge medical debts. Then there are others where their credit cards got out of control.
When Can I Stop Paying my Creditors in a Bankruptcy?
The first thing that you want to happen with your bankruptcy is to have your creditors leave you alone. This is usually one of the first questions that an individual will ask their bankruptcy attorney. Once you have gone through with your bankruptcy filing generally you can stop paying your creditors. This is only applicable to those that you will be able to discharge in your bankruptcy.
