Even though time has passed since the economic downturn of 2008, we still have people who are struggling financially. Month after month, people are deciding whether to pay their phone bill or credit card bill. Some are struggling to keep up with their car and mortgage payments. This kind of financial hardship often causes people to look towards bankruptcy. However, there are a few things everyone should know before taking this step.
Bankruptcy isn’t for everyone. Some of those in debt simply believe that they can file for Bankruptcy in Brownsburg IN and become debt free. Unfortunately, that isn’t entirely true. No ones’ filings are automatically granted. Each filer must go through a series of steps before their qualifying debt can be ‘erased.’
Once you file for bankruptcy the courts will issue an automatic stay. All this means is that your creditors will be prohibited from continuing to make collection attempts. This means that all of the daily calls and emails will stop, and any legal actions being taken against you will be halted.
After the automatic stay has been issued, the courts will carefully take a look at your bankruptcy filings. When it comes to Bankruptcy in Brownsburg IN your creditors will be contacted and told about your attempt to get rid of your debt. At this point, your creditors have the option to allow the filing to continue or make an argument against you. It’s possible that your creditors can prevent your bankruptcy efforts from going through. This will ultimately depend on your creditors and the court.
If your creditors agree to let the process continue, be prepared to provide more information. Both the courts and the creditors will want to know as much about your financial situation as possible. How many creditors do you owe? How much do you owe each of your creditors? What’s your monthly income? Be prepared to answer all of these questions truthfully. Your answers will determine how much of your debt is erased, and how much you’ll have to pay. Yes, you’ll likely have to pay something.
Use this information if you’re thinking about filing for bankruptcy. There’s legal help from lawyers if you need it. Contact them to discuss your debt, and the steps you’ll have to take.
