The Situation in the Hoosier State
With businesses closing and unemployment
hovering around 10%, Indiana residents are being forced to consider drastic
measures to survive the current recession.
U. S. bankruptcies filed in 2008 hit record levels with over 39,000 in Indiana
alone, and nearly 98% of those filed by consumers. It is estimated that 1.4 million consumer bankruptcies
will be filed in the U.S. in 2009, the surge triggered by the foreclosure
crisis and economic downturn.
Indiana Bankruptcy Legal Advice
The Federal Bankruptcy Law
involves processes, procedures and evaluations which can be complex and
confusing, including major revisions made in 2005. Seek the advice of a Indiana law firm with
specific long-term experience in Indiana bankruptcy matters. Check references, if possible. A competent Indiana attorney will help you
weigh your different options, make informed decisions, help you protect the
security of your family and reduce your stress, while facing the realities of
Chapter 7 - The Most Common Consumer Bankruptcy Choice
Chapter 7 is the “fresh
start” chapter of the Bankruptcy Code and most commonly used. This filing results in a fair distribution of
your available nonexempt property to creditors.
Unsecured debts are generally discharged. Included in this process is a “means test”,
used to determine your ability to pay your creditors, verifying whether Chapter
7 is appropriate or indicating that you should be filing Chapter 13. Median Family Income by Family Size and current poverty guidelines are factors evaluated when determining appropriate
filing status for a given situation.
Debts Which Generally Cannot be Discharged in Your Indiana
- Taxes owed to government
agencies, such as the I.R.S., State of Indiana, County, etc.
- Student loans (unless undue
hardship can be proved),
- Debts incurred after the
bankruptcy is filed
- Debts owed to a spouse for
divorce-related obligatory expenses
- Debts not listed or scheduled or which the
debtor waived discharge
- Debts for willful and
malicious injury by the debtor to another person or property owned by
to Indiana Bankruptcy
Contact your creditors to try to work out payment
arrangements that you can manage.
Contact the non-profit Consumer Credit Counseling service to get help
with a manageable repayment plan. Sell
as many assets as you can and pay down your debt to a manageable level. Debt consolidation may be considered, but
approach this option with caution to make sure it actually helps your
Final Thoughts on Indiana Bankruptcy
Indiana residents continue to
suffer, as the State’s economy
struggles to recover. If you are
considering filing for bankruptcy in Indiana, decisions you make and actions
you take now can have a positive or negative effect on the outcome of
your bankruptcy proceedings. Although
some filers elect to handle their bankruptcy on their own, The U.S. Bankruptcy
Court cautions that “Bankruptcy
has long-term financial and legal consequences -- hiring a competent attorney
is strongly recommended.” Click here to find Indiana
attorney resources in your area.