Bankruptcy Attorneys in Indianapolis
Indiana Bankruptcy Chapters 7 & 13. The most common forms of bankruptcy used by most ordinary consumers are Chapter 7 and 13. In a common Chapter 7, the debtor (you) wipes out his or her debts without offering to pay on them. There are certain restrictions to Chapter 7 concerning amounts of property and income. In a Chapter 13, a debtor reorganizes his or her finances by paying some of the debt back over a three to five year period by making payments to the bankruptcy trustee. A Chapter 13 can be used to save homes from foreclosure, stop repossessions, deal with taxes, lower auto and furniture payments and protect property, which might be lost in Chapter 7. At Tom Scott & Associates we strive to fit you with the form of bankruptcy that will work best for your individual situation. If we don't think you should file at all, we will tell you so.
Bankruptcy and Lawsuits
Bankruptcy will stop nearly all lawsuits against you but only after your bankruptcy is filed and the court is notified in writing that you have filed bankruptcy. You must provide the attorney with complete information about all lawsuits you are involved in, including copies of any court papers.
It is possible that during or even after the bankruptcy one or more of your creditors may file a lawsuit against you. You must get the papers to the attorney immediately to protect your rights. A delay may cause you to waive (lose) a defense to the lawsuit called discharge in bankruptcy. Please pick up any certified mail you get because it might be a lawsuit.
You will not have to go to court for these lawsuits unless the attorney tells you to go. However, bankruptcy will not stop criminal, traffic, divorce, or support cases and you must go to court on those.
Bankruptcy and Garnishments
Bankruptcy will stop garnishments against you, but only after your employer is notified in writing about the bankruptcy. Note: the money already garnished cannot be refunded.
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