Dyer Consumer Bankruptcy Attorneys Help You Resolve Debt Issues
Personalized assistance for debtors throughout Indiana and Illinois
If the current economic climate has you overwhelmed, you’re not alone. If you’ve taken on heavy debts and fear you’ll never be able to repay what you owe, it may be time to consider bankruptcy. At Rubino, Ruman, Crosmer & Polen in Dyer, our experienced attorneys provide personalized assistance geared towards your specific circumstances and your needs. If bankruptcy is your best option, we’ll guide you through the process, taking meticulous care to secure the greatest benefits from the law. If an alternative to bankruptcy is more appropriate, we’ll guide you on that path and work towards the most positive outcome possible.
How consumers can benefit from Chapter 7 bankruptcy
The most common form of bankruptcy is Chapter 7, sometimes called ‘clean slate’ bankruptcy because you can get a full discharge of your eligible debt in only a few months. Chapter 7 is often the best option for debtors with vast unsecured debt, such as medical bills, credit card balances and personal loans. Certain debts are not dischargeable, such as child support, alimony and recent income tax liabilities. Chapter 7 is also known as liquidation bankruptcy because you must surrender non-exempt assets to the bankruptcy trustee, who sells those items to partially repay your creditors. You are permitted to retain exempt assets, such as part of your home equity and certain personal property, so you can be well positioned to get on with life after the discharge. However, you must pass a means test, which generally requires that your income be below the median level for a household your size. We can help you determine your eligibility for Chapter 7 and advise if it is the best option in your situation.
Why Chapter 13 might be the best choice for homeowners
If you can’t pass the Chapter 7 means test or you want to hold onto a high-value asset, like your home, you can file for Chapter 13 bankruptcy. This allows you to seek court approval of a repayment plan for much of your debt, provided you have sufficient disposable income to devote to satisfying creditors. A repayment plan normally runs for three to five years, depending on your level of debt. After you have completed the plan, the court discharges your remaining eligible debt. Secured debts like mortgages remain in force. However, Chapter 13 bankruptcy can allow you to avoid foreclosure, stay in your home and restructure your mortgage arrears. In some cases, you can shed a second mortgage completely. We can help work out a realistic and achievable plan that puts you on a firm footing for financial recovery.
Discharging student loan debt based on hardship
Student loan debt in the U.S. is at record levels and it often puts borrowers under economic stress that can lead to bankruptcy. Student loans are generally not dischargeable in bankruptcy but there is an exception if you can show “undue hardship.” This means proving that the debt prevents you from maintaining a minimal standard of living. We can explore extenuating circumstances that help establish financial distress, such as a disability that limits your earning capacity.
Trustworthy guidance on bankruptcy alternatives
Bankruptcy is not the best option for every debtor. We advise clients on debt settlements, debt consolidation and the pros and cons of borrowing from retirement funds, such as a 401(k). Our bankruptcy lawyers also have business lawexperience, with ability to work out and negotiate effective arrangements for preventing insolvency.
Contact our Dyer, IN law firm to discuss your consumer bankruptcy options
Rubino, Ruman, Crosmer & Polen in Dyer, Indiana represents consumers in Chapter 7 and Chapter 13 bankruptcy and counsels clients on other debt resolution strategies. To schedule a free initial consultation, call 219-227-4631 or contact us online today. We serve clients throughout Indiana and in the greater Chicago area.