Indiana Chapter 7 Bankruptcy

When corporations find it impossible to pay debt back its creditors, the entity may file a claim or be told by a creditor to file a claim for bankruptcy.  An official from the court is appointed as soon as claim is filed with the court.  The function of the court official is to liquidate the assets of the business and pay the creditors with the money collected by liquidation.  When a corporation files a Chapter 7 claim, it does not mean that all employees within that business will become unemployed.  It is a common trend for a business to sell an entire section of the entity to a different corporation during the discharge process.  Fully secured creditors, like mortgage brokers, can use the company’s collateral to secure their default loans.

If you or someone you know is thinking about filing the Indiana Chapter 7 Bankruptcy, contact an Indiana Bankruptcy Lawyer right now!

A discharge from a bankruptcy releases debtors from personal liability for most debts and prevents the creditors from collection against the debtor.  In Chapter 7 Bankruptcy, the filings of the corporation can not receive a bankruptcy discharge record.  Only an individual can receive a Chapter 7 discharge.  When an asset of the debtor’s business has been sold, the case is closed.  Also individuals can file a straight bankruptcy or liquidation. 

Below is some exclusion from bankruptcy discharge judgments:

1. Housing Liens
2. Child Support
3. Federal Income Taxes
4. Outstanding College Loans
5. Local Government Fines

Bankruptcy claim can remain on a debtor’s credit for at least a decade.  Credit is very difficult to acquire during this period.  Consumer credit and creditworthiness is a complex subject. However, the future ability to obtain credit is dependent on the individuals’ ability to pay off excluded debts and financial stability. The chance of receiving a Chapter 7 bankruptcy discharge is only a few of many issues to be considered in determining whether to file a claim. The importance of the effects of bankruptcy on creditworthiness is sometimes overemphasized because by the time most debtors are ready to file for bankruptcy their credit score is already ruined.

Do you think you or a friend needs to file an Indiana Chapter 7 bankruptcy? If so, contact an experienced Indiana Bankruptcy Lawyer immediately!

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