When it comes to filing for bankruptcy, it can be difficult to know exactly what you are looking at and how to properly proceed. It can be difficult to know what types of debt can be discharged, what papers to file, and what the overall process is. With the help of great Indianapolis bankruptcy lawyers, you can figure out how to file, what type to file, and what the overall process is.
It is helpful to look at some possible requirements when it comes to filing bankruptcy. There is no real threshold and no real amount that says you can file bankruptcy or not. Rather, there are other stipulations that do help determine if you are eligible to file for bankruptcy or not. The first thing that your lawyer and the court will look at is your debt-to-income ratio.
Debt to income ratio refers to the amount of debt that you have compared to the amount of money that you are bringing in each month and the amount of money that you have in your bank accounts. If you have $10,000 in debt for instance but you are making $4,500 a month, it may be hard to get a bankruptcy rolling.
The bills and the money that you have going out every month also figure into approval for bankruptcy or denial. If you are making $4,500 a month for instance but you have $2,000 in rent, $200 in health insurance, $100 in grocery bills, gas bills, cell phone bills and more, this is going to figure into how much money you can feasibly pay toward your debt each month. A judge is not going to require that you pay all of your extra money each month toward paying down debt when you already have a great deal of payments and money that you have to pay each month.
The judge is also going to take into account how much property you own. If you have a $500,000 home that you either own outright or that you have a lot of equity in, a judge is less likely to dismiss a small debt or allow a small bankruptcy to go through. The goal of the judge in approving or denying a bankruptcy is to look at factors like how much you owe, how much you make and how much you are paying out each month toward other bills.
It can be very difficult to get a bankruptcy approved if you do not actually have a need for it and if you do not have an actual inability to pay the debt that you owe. You also have to keep in mind that you are not going to be able to file again for bankruptcy for eight years following the first time that you filed in terms of chapter 7 bankruptcy. You can file a bit more often if you are filing Chapter 13 you will be able to file again after two years.
When it comes to filing any sort of bankruptcy, it is important that you take the time to really take a look at the bankruptcy and to evaluate all your options so that you can be sure you are making the right choice and you are making the right overall choices in terms of your finances. Bankruptcy is a very serious thing, and it can affect your life for years to come. It can also affect your credit score, your ability to get loans in the future, and more.
Do You need an Attorney?
An attorney when it comes to bankruptcy is always a good idea. With the help of an attorney, you can figure out what type of bankruptcy is going to work best for you and for your particular financial situation. If you are worried that you might not file the right kind of bankruptcy, talking with an attorney can make a big difference in the way that your bankruptcy carries out.
With the help of an attorney, you can also work through the paperwork and the overall process of bankruptcy. It is not something that is going to be super fast and simple. Bankruptcy can take a matter of months and can take a long time to resolve on your own. An attorney is going to be able to streamline the process and help move it along so that you can get back to living your life and you can get back to focusing on other things rather than worrying about your bankruptcy.
The first part of any filing is going to be talking with the attorney about what debt you have, what your income is, and what your options are for filing. They will also talk with you about the overall information that is going to be needed to take the next steps and to get your bankruptcy going. You are going to have to take classes online or in-person that will help you to learn how to budget your money, how to get back to functioning after your bankruptcy, and more.
With the help of an attorney you can get your case heard, you can get it taken care of, and you can ensure that your case is going to be fair and impartial and that you are going to be able to get the best outcome possible. Debt can be tricky, it can be debilitating, and it can be so difficult to deal with and to handle the overall process if you are unsure what you need to do and what you are supposed to do. With the help of an attorney, you can get your bankruptcy taken care of and handled quickly and efficiently.