Danville Bankruptcy Definitions and Descriptions
For Residents Living in Danville, Indiana:
Have a Lawsuit and live in Danville, Indiana?
Lawsuits are stopped and shut down by filing bankruptcy. Lawsuits are “stayed” until the are usually dismissed by the creditor or the court. There are only very limited exceptions to this rule such as divorce or child support suits.
Live in Danville and have a Garnishment?
These are a result of an order coming out of a creditor’s state court collection lawsuit. The order says that your employer must start taking portions out of your paycheck to pay back the creditor’s debt. Bankruptcy stops garnishments and usually shuts down (or “stays”) all lawsuits against you.
Live in Danville, Indiana and your home is in Foreclosure?
A foreclosure action or sheriff sale is either cancelled or postponed by the bankruptcy filing. Usually, Chapter 7 only postpones the foreclosure process. Chapter 13 has the ability to permanently cancel a foreclosure action by allowing the filer to pay back the arrears of the home through the Chapter 13 plan payments.
Danville Chapter 7 Bankruptcy:
This is the Bankruptcy that allows you to get a full “Fresh Start.” Your debts are fully eliminated (with some exceptions such as student loans). You can keep your house and car(s) if you can afford to keep making the payments. This is the most common bankruptcy. It is the Bankruptcy that approximately 85% of people from the Danville area choose to file to get relief. Some restrictions on income and assets can apply.
Danville Chapter 13 Bankruptcy:
This is the “Reorganization” Bankruptcy that allows you to reorganize your debts into a more affordable payment plan that will last for 3-5 years. This bankruptcy can negotiate better terms sometimes for the payback of your loans. This bankruptcy can also be used to stop foreclosure and bring house payments up to date. Approximately 15% of people living in the Danville area file this type of bankruptcy. This type of bankruptcy is also chosen when it is not possible to file Chapter 7 bankruptcy due to income, asset, or prior filing restrictions.
– Bankruptcy Attorney John F. Bymaster, serving Danville Indiana on Danville Bankruptcy Definitions and Descriptions