What is bankruptcy?
Bankruptcy is a state in which the person in neck deep in debt and is unable to recover himself or herself from the evils of the debt. In this situation there is the bankruptcy law which is applicable and the person suffering from all the debts can file for a bankruptcy with the court of law to protect them. Generally everyone is aware that the business and personal property of the person comes to stake when he is unable to pay off the bills of the creditors. This is the worst case scenario from which the law protects the applicant. For example, if he has mortgaged his office building with a bank for a loan and is unable to repay it, the bank will consider the auction of the building to get back its principle as well as interest amount. This will leave the debtor without mercy and thus, he can hire a bankruptcy attorney in the city of Indianapolis to seek protection under the law.
When can this be filed?
It is not common knowledge about when and how a person can file for a bankruptcy. Thus, they should find the help of the lawyers to make them understand the concept completely and then, venture into the right time to file the application. The main purpose of filing this application is to get a few debts discharged. This is conditional to the situation under which the person has become bankrupt. There are a few signs which the lawyer will teach about the right time to file the case with the court of law.
Are there different types of bankruptcy?
Before taking up the services of a bankruptcy attorney in Indianapolis, it is best to understand the various categories that the law is divided into. Hiring the specialist accordingly will make much more sense. There is the Chapter 7 bankruptcy which will discharge off most of the debts in the name of the applicant and this allows for a clean and new start. Chapter 13 allows the person to make the repayment plan for the given 3 or 5 year period so that there are no more legal notices and foreclosure threats from the creditors. When the case is taken to the specialist, he will explain how much of the law is applicable to the case and what the person can expect out of the filing without having false expectations.
This article is written by James Stew. With the experience he felt the need to educate the people about legal matters, what better could he find than writings. He puts in regular information about debt relief in Indianapolis.