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Before making any such decision, it would be highly advisable to contact an accomplished Elkhart bankruptcy attorney.Įlkhart, Indiana is a city located in Elkhart County, just south of the Illinois border.
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One should not make the decision to file for bankruptcy in Elkhart lightly. How Can a Elkhart Bankruptcy Lawyer Help? Also, they can continue to buy and sell their stock. Once this plan is presented, it is submitted to the participating creditors, who must approve it by a majority vote before it can be implemented.Ī main advantage of Chapter 11 bankruptcy is that businesses can continue their operations while going through the process.
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Under this system, the debtor must come up with a plan to reduce debt, cut costs, and improve operations. Like Chapter 13, Chapter 11 requires the restructuring of debts. Though accessible to individuals, Chapter 11 bankruptcy is generally used by businesses. This gives the debtor some breathing room, allowing him to continue to earn a living while gradually paying down his debts, and gives some security to creditors that they will eventually collect all or most of what they're owed. In this system, the amount of money the debtor owes is not actually reduced, but the payment of the debt is made far more manageable. It allows a person to pay off their debt over a prolonged period of time, often consolidating it into one periodic payment. The other form of bankruptcy most often used in Elkhart is Chapter 13. Even when the bankruptcy process is complete, these debts will have to be paid in full. It should be noted that some types of debts are not dischargeable in Chapter 7 bankruptcy, including student loans, criminal fines, taxes, and child support payments. This means that the debtor can keep them. Not all of the debtor's assets will need to be sold, and many types of property are completely or partially exempt, including homes, cars, retirement accounts, and insurance policies. Liquidation is basically selling assets to the highest bidder. Once the sale of the assets is complete, and the proceeds handed over to the creditors, the debt is viewed as discharged. Chapter 7 bankruptcy requires the debtor to liquidate some of his or her assets in order to pay off as much debt as possible. Being governed by federal law, the procedures involved in filing for bankruptcy in Elkhart, Indiana will be about the same as anywhere else in America. In Elkhart, Indiana, 3 types of bankruptcy procedures are in common use: Chapter 7, Chapter 11, and Chapter 13. This determination is highly dependent on the details of each individual case, so an Elkhart attorney's advice is absolutely indispensable. This attorney will be able to advise you as to whether or not filing for bankruptcy is a good idea, given your individual situation. For example, bankruptcy makes it very difficult for the debtor to obtain credit in the near future.įor that reason, it would be prudent to speak with a good Elkhart, Indiana bankruptcy attorney. It also carries significant long-term consequences, which must be carefully weighed against the potential benefits. It is designed to prevent debt which has minimal chance of ever being paid back from ruining the life and finances of the debtor.
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However, bankruptcy is not a free ride, allowing someone who simply doesn't feel like paying their debts to get out of that legal obligation. This hopefully allows them to start over with a clean slate and move on, after having learned to better manage their use of credit in the process. In Elkhart, Indiana, bankruptcy is a legal proceeding in which a person or business has some or all of their debts legally absolved, when they are unable to pay them.