Best Consumer Protection Lawyers in Gary, IN

If you file for Chapter 7 bankruptcy, your nonexempt assets will be liquidated to repay your creditors. Nonexempt assets are things such as vacation homes, family heirlooms, investments outside of retirement accounts, and valuable artwork. Exempt assets are things such as furniture, health aids, retirement accounts, and the family vehicle.

While bankruptcy filings are public record, it is rare for parties outside a case to seek such information. Therefore, only you, the court, and anyone you inform of your bankruptcy will know about your case.

You will be able to rent, however it can be difficult to have a lease application accepted if you have bad credit and a bankruptcy case on your credit history. In some cases, using bankruptcy to reduce your personal debt can help you secure a lease, as removing your debt can make you appear to be a better credit risk than other applicants.

Yes, you are actually encouraged to seek new credit after you file for bankruptcy in order to rebuild your credit score. Certain financial institutions specifically seek individuals who have filed for bankruptcy to offer them credit.

The type of bankruptcy you file and the form of your business determines the impact of bankruptcy on your business. Only individuals can file Chapter 13, so it can be used to reorganize the personal and business debts of a sole proprietor, but it will not affect a corporation, partnership, or limited liability company. A business will file under Chapter 7 or Chapter 11. Filing a Chapter 7 bankruptcy can wipe out your sole proprietorship's debts because it is not a separate legal entity from you. The business assets will be listed in the bankruptcy because they are your personal assets as well. A bankruptcy trustee will use the assets of a sole proprietorship to pay creditors back to the greatest possible extent. However, if you file a Chapter 7 bankruptcy there will be no impact to your business if it is organized as a partnership, corporation, or limited liability. Chapter 11 bankruptcy is a business reorganization bankruptcy that allows your business to continue operating while reorganizing the debts according to a debt repayment plan. It is complicated, expensive, and appropriate for business owners who are trying to rebuild their businesses and plan for the future. There are expedited proceedings available for small business debtors who are trying to restructure the business, but you only have 300 days to propose a plan to repay creditors.