What is Chapter 7 Bankruptcy?

Posted by Corey L. Scott | Aug 06, 2022 | 0 Comments

Chapter 7 bankruptcy is also known as liquidation bankruptcy. It is the most common type of bankruptcy in the United States. Chapter 7 allows individuals or businesses to get rid of their debts by selling off their assets. The proceeds from the sale are then used to pay off creditors.

The biggest benefit of Chapter 7 bankruptcy is that it can help you get out of debt quickly. Once your assets are sold, and your debts are paid off, you will be able to start fresh with a clean slate. Additionally, this filing can stop creditor harassment and wage garnishment. It can also help you keep your home and car if you are current on your payments. Most student loans, alimony, and tax debts are unaffected by this bankruptcy filing.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is also known as a reorganization bankruptcy. This type of bankruptcy allows individuals or businesses to create a repayment plan to pay off their debts over a period of time, typically three to five years.

One of the biggest benefits of Chapter 13 is that it can help you keep your home if you are behind on your mortgage payments. It can also help you keep your car if you are current on your payments. In addition, Chapter 13 can stop creditor harassment and wage garnishment.

Can a Bankruptcy Lawyer Help Me?

When you're struggling with debt, it can feel like you're all alone. The reality is, however, that many people are in the same situation. Bankruptcy is a legal process, and certain requirements must be met to file. An experienced bankruptcy lawyer can help you navigate the process and ensure that all the necessary paperwork is filed correctly and on time. There are two types of bankruptcies that individuals can file: Chapter 7 and Chapter 13. Which one is right for you will depend on your unique circumstances.

Which Bankruptcy is Right for Me?

The type of bankruptcy that is right for you depends on your unique financial situation. You should always speak with a bankruptcy attorney to discuss your options and find out what is best for you. There are pros and cons to Chapter 7 and Chapter 13 bankruptcy, and an experienced attorney can help you make the best decision for your particular situation.

At our firm, we understand that filing for bankruptcy can be a difficult and foreboding decision. Our experienced bankruptcy attorneys will work with you to determine which type of bankruptcy is right for you and guide you through the process every step of the way. Contact us today at (317) 623-4546 for a free consultation.

About the Author

Corey L. Scott

Corey L. Scott, was born and raised in East Chicago, Indiana. Upon graduation from East Chicago Central High School, Corey attended Indiana State University and graduated with a Bachelor of Science degree in Criminology.  Upon graduation, Corey accepted a position with the Marion County Superior Court, Juvenile Division where he served with distinction for the next nine years, eventually being promoted to Director of the Youth Counseling Department. Pursuing his dream of becoming an attorney, Corey attended the Indiana University School of Law-Indianapolis.  While in law school, Corey was an Indiana Council on Legal Education Opportunity (ICLEO) fellow and participated in Moot Court competitions.  He also worked in the Marion Superior Court, Criminal Division as a bailiff and research assistant to the Honorable Tanya Walton Pratt, who serves as a Judge on the United States District Court for the Southern District of Indiana. Corey also served as an internship law clerk to the Honorable Judge, Margret G. Robb, at the Indiana Court of Appeals. Finally, upon graduation from law school, Corey had the distinct honor and privilege to serve as a law clerk to the Honorable Justice, Robert D. Rucker, who sits on the Indiana Supreme Court. Corey then became an associate with Mike Norris Law Office, where he specialized in bankruptcy law with a main concentration on working to assist families obtain a fresh start through Chapter 7 bankruptcy.  Still a young attorney, Corey then served as a public defender at the Marion County Public Defender Agency.  In this position, Corey gained invaluable trial experience by defending clients in a wide range of matters from misdemeanors to serious felonies on a daily basis.  It was also during this time that Corey discovered his passion for representing and serving "everyday people." An entrepreneur at heart, Corey established the Law Office of Corey L. Scott, P.C.  Since then, he and his staff have served the greater Indianapolis community and surrounding counties in several legal disciplines including: Bankruptcy, Criminal Defense and Family Law.  In keeping with his vision, Corey L. Scott, P.C., is a client focused, results oriented general law practice that endeavors to provide legal solutions for "everyday people" charged with a crime, dealing with financial crisis or going through a difficult divorce. Corey has also been active serving the greater Indianapolis community by participating in pro bono programs such as "Ask a Lawyer," the "Modest Means" panel program which allows individuals to afford legal counsel at a fraction of normal rates, Neighborhood Christian Legal Clinic and the Heartland Pro Bono Council program. Corey is a proud member of the Indianapolis Bar Association, Indiana Bar Association, American Bar Association, National Association of Criminal Defense Lawyers and the National Association of Consumer Bankruptcy Attorneys.

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