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How To File Bankruptcy Chapter 7 Yourself In Indiana

Estimate Whether You Will Lose Any Property

Indiana Chapter 7 Bankruptcy Explained

As you can imagine, many people want to keep their home, car, cash, etc. when filing bankruptcy.

You need to understand the bankruptcy exemptions in Indiana. The bankruptcy exemptions are complex because some states allow you to choose between state and federal exemptions when filing bankruptcy. For example, check out the Indiana homestead exemption.

As such, we created this Indiana bankruptcy exemptions calculator to simplify the information. This free calculator helps you estimate whether your belongings are at risk when filing bankruptcy in Indiana.

How Does Chapter 7 Work In Indiana

People who are facing financial challenges have many concerns but some are more serious than others. The two main concerns are how quickly the person can get out from under their debt and how much it will cost the person to get out of debt.

Resolving your debt in a timely manner: In Indiana, you may be able to resolve your debt in as few as 120 days. That is considering that you have no assets at that point. That would mean that you dont own your home or any other assets that are valued above what are considered bankruptcy exemptions in Indiana.

Determining the cost to file for Chapter 7 bankruptcy in Indiana: To file for Chapter 7 in Indiana is not the same as in the rest of the country. In fact, the cost may vary from one part of the state to the next. Part of what you will be responsible for paying is the bankruptcy attorney fee, which will also vary, depending on exactly where you are in Indiana.

Take A Credit Counseling Course

You have to complete a within the 180 days before you file. The course is usually offered online or by telephone, and you have to take it from an approved provider. The purpose of this course is to help you look at your financial situation and develop a personalized plan to address your debt. It covers all your debt relief options, including Chapter 7 and Chapter 13 bankruptcy.

The course fee is usually under $50. When you sign up, you can apply for a fee waiver if you canât afford the cost. When you get your certificate of completion, itâs critical to send it to the court when you send your bankruptcy petition. The court will dismiss your case if you donât do this. This rule is very strict, and it causes big problems if you re-file later.

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What Does Bankruptcy Include

Once you file for bankruptcy in IN, the courts put in place an order called an Automatic Stay. This order will stop debt collection calls, wage garnishments, and additional claims. Keep in mind that payments regarding child support and criminal cases will still need to be made during this time.

In any event, Bankruptcy will be able to include:

  • medical expenses

Again, unless you are filing a complex Chapter 13 case, you will lose all assets associated with a Chapter 7 Bankruptcy protection. You will, however, be able to prevent any and all collections from occurring as long as they were incurred before the date of filing and discharge.

Indiana Bankruptcy Exemptions: Can I Keep My Property

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The U.S. Bankruptcy Code provides a list of exemptions, but each state can also establish their own list of exemptions. Now heres the key: some states allow filers to choose whether to use the federal or state exemptions, and others insist that filers use the state exemptions. These latter states are known as opt-out states, and this is where Indiana falls. If you file in Indiana, you must use the Indiana bankruptcy exemptions and may not use the federal exemptions except for some specific federal exemptions that you may use in conjunction with the state exemptions.

If you are married and file a joint bankruptcy with your spouse, you can double the exemption amount for any property as long as you both have an ownership interest.

Lets take a look at some of the important Indiana exemptions. Please note that these amounts may change regularly, so its important to consult with an Indiana bankruptcy attorney before you file to determine your best use of exemptions.

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Are There Some Debts That Cannot Be Eliminated In Bankruptcy

Although most debts are able to be discharged in bankruptcy, there are a few that will survive. Some of the most common nondischargeable debts are:

  • Alimony, spousal maintenance and child support
  • Debts arising from fraud or other wrongful conduct
  • Trust fund taxes
  • Some income taxes
  • Debts arising out of a divorce or property settlement agreement .

What Is Chapter 11

There are other types of bankruptcy filings that are less common and more costly for small businesses, such as Chapter 11. This type of bankruptcy is for businesses with $2.5 million or more in debt, or for businesses owned by LLCs or partnerships. A Chapter 11 bankruptcy is similar to Chapter 13 but is usually only for businesses.

This type of bankruptcy:

  • Involves a creditors’ committee appointed by an independent trustee
  • Reorganizes the company according to a plan that creditors vote on
  • Sets up a payment plan for the company to repay its debts

The Small Business Reorganization Act of 2019 made Chapter 11 less costly for small businesses, allowing them more flexibility to negotiate terms of the bankruptcy with creditors. But this is still much less common than Chapter 13. You may want to speak with a lawyer if you feel like a Chapter 11 bankruptcy is right for your company.

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Filing Bankruptcy In Indiana

Youll notice from the table of the contents that we focus specifically on Chapter 7 and Chapter 13 bankruptcy. Why? Because these two types of bankruptcy are the most common bankruptcy in America . There are other types such as the Chapter 11 and Chapter 11 subchapter 5 bankruptcies, but these are far less common for consumers .

Chapter 7 bankruptcy is also known as the liquidation bankruptcy. Chapter 13 bankruptcy is also known as wage earners plan. We will cover these in greater detail

Protecting A Financed Home Or Car In An Indiana Bankruptcy

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Many people wonder if they can wipe out a home mortgage or car loan and keep the property without paying anything more. The simple answer is “No.”

Protecting the equity with an exemption will keep the Chapter 7 trustee from selling it, and you won’t have to pay extra to keep it in Chapter 13, but there are more steps to take.

First, in a Chapter 7 case, the mortgage or car payment will need to be current. Second, you’ll need to be able to continue to make the payment. Why? Because when you purchased it, you gave the lender a property “lien.” The lien created a secured debt that allows the lender to take back the property if you don’t pay as agreedeven in bankruptcy. So if you’re behind on the payment and file for Chapter 7, you’ll lose the property. Instead, consider catching up on arrearages in Chapter 13.

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Why Do People File For Bankruptcy

No one’s financial circumstances are exactly the same when it comes to bankruptcy. But many bankruptcy filers head to court for similar reasons. Here are the three most common reasons for bankruptcy filings, according to the American Bankruptcy Institute:

  • Job loss: The loss of a job can cause tremendous financial troubles, such as falling behind on your mortgage payments, auto loan payments and other debts.
  • Medical costs: A health care issue like a catastrophic illness or injury can leave you grappling with medical debt.
  • Divorce: Ending a marriage can heap debt on one spouse or both spouses. The change in financial situation can make it even harder to pay off these debts.
  • Chapter 7 Bankruptcy In Indiana: What You Should Know

    On Behalf of Lynch & Belch, P.C. | Sep 16, 2022 | Chapter 7 Bankruptcy

    Life can be challenging and expensive. Sometimes, your debts get out of control and you find yourself in a position of having few options to resolve those debts and get out from under them so that you can live your life again without the financial stress that you are experiencing day and night.

    Americans across the country are experiencing several different types of debt and Indiana is not exempt from the challenges of navigating through the financial hardships and trying to figure out what is best for you.

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    How To File Bankruptcy Without A Lawyer

    3 minute read ⢠Upsolve is a nonprofit tool that helps you file bankruptcy for free. Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so weâll never ask you for a credit card. Explore our free tool

    In a Nutshell

    You are not required to hire an attorney to file bankruptcy. You can do so for free, or with a legal aid organization.

    Written by Attorney Eva Bacevice. Ã

    You always have the option to file bankruptcy without a lawyer. Representing yourself is called filing âpro seâ and it is an option in any legal proceeding. And yet, while it is always possible to file a bankruptcy without a lawyer, the better question is should you? In this article we will examine some bankruptcy basics to help educate you about the different types of bankruptcies and the relief they can offer. For simple straightforward cases it is entirely possible to be successful pro se. For more complicated matters it is usually better to have a lawyer or legal aid to assist you.

    Filing Bankruptcy In Indiana: 4 Things You Need To Know

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    You are looking to file bankruptcy in Indiana. The most important things to understand are the process, qualification, costs, risk of losing belongings, pros and cons, and alternatives. The purpose of this article is to provide this information and personalized information based on your unique situation from our bankruptcy calculators.

    Firstly, you need to know that bankruptcy is a legal debt relief option. It can help you eliminate debt, protect you from creditors, and give you a fresh start. In fact, in Indiana, there were 15,719 from for the past year ending June 30th, 2021. Bankruptcy can even allow you to save for retirement.

    You will notice that steps 1-7 below are to help you research whether and how to file for bankruptcy in Indiana. Steps 8-15 are the actual bankruptcy process.

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    How A Bankruptcy Lawyer Can Help

    Our advice is to avoid the risks of pro se filing and seek the proper legal services. After you choose a bankruptcy attorney, they help you through the filing process. An attorney can help you:

    • Understand which debts can be discharged and which cant.
    • Accurately fill out your bankruptcy forms.
    • Know what tax consequences to expect.
    • Understand which assets you can keep.

    This is just a small sample of what a bankruptcy attorney can do for you. Filing without a lawyer is possible, but requires so much work on your part and leaves plenty of room for error. Letting your lawyer provide legal advice and handle the difficult stuff also gives you more time and energy to repair your credit score.

    Need help starting the filing process? Were here so you can get the fresh start you need.

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    Contact An Indiana Bankruptcy Lawyer

    We understand that bad things can happen to good people. Even the most financially responsible people who have always had good credit ratings can find themselves in financial trouble and need bankruptcy protection.

    For help, contact us today to schedule a free initial consultation. We serve clients in Northern Indiana and the surrounding towns, areas, and counties. We offer a high level of personal service, attorneys at our law firm are accessible and available by phone or email. After-hours and weekend appointments are available.

    We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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    Attend The Meeting Of Creditors

    The 341 meeting of creditors and the hearing where all debtors must attend in a bankruptcy proceeding. The meeting often occurs between 21 and 50 days after filing the petition. It generally takes 10 to 15 minutes. The meeting is a recorded conversation between the trustee, your bankruptcy attorney, and yourself about the paperwork you filed. The bankruptcy trustee will ask questions to ensure that you understand the bankruptcy process.

    Do Creditors Show Up?

    Understand Indiana Court Locations

    Many 341 meetings of creditors have been over the phone or over Zoom due to the pandemic. That said, you may want to see where the courthouse is in Indiana if there are any meetings that need to take place in person. Below are the court locations for filing bankruptcy based on the bankruptcy district.

    • Birch Bayh Federal Building & U.S. Courthouse < br> 46 East Ohio Street < br> Indianapolis, IN 46204
    • U.S. Courthouse < br> 921 Ohio Street < br> Terre Haute, IN 47807
    • Winfield K. Denton Federal Building & U.S. Courthouse < br> 101 Northwest Martin Luther King Boulevard < br> Evansville, IN 47708
    • Lee H. Hamilton Federal Building & U.S. Courthouse < br> 121 West Spring Street < br> New Albany, IN 47150

    Determine Whether You Need Help To File Bankruptcy In Indiana

    Chapter 7 Bankruptcy Pros and Cons in a COVID-19 World

    Did you know that some people file for bankruptcy without an attorney? Many people prefer using a bankruptcy lawyer given the complexity of filing bankruptcy, but it is possible to often file Chapter 7 bankruptcy without an attorney. Filing Chapter 13 without an attorney may be much more challenging.

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    How Does Filing For Bankruptcy Affect Your Credit

    Filing for bankruptcy is one of the worst things you can do for your credit since it’s a signal to future creditors that you were unable to meet your debt obligations. Fortunately, a bankruptcy filing doesn’t leave a permanent mark on your credit reports, and you can start rebuilding your credit while you’re trying to get your finances in order.

    No matter whether you’ve filed for Chapter 7 or Chapter 13 bankruptcy, it’ll show up on credit reports for card issuers and other lenders to see. Chances are, lenders will take your bankruptcy into consideration when you apply for credit. Once you’ve wrapped up the bankruptcy process, your credit reports will indicate that the bankruptcy and the debts covered by your filing have been discharged.

    A Chapter 7 bankruptcy will stay on your credit reports and affect your credit scores for 10 years from the date your court case is filed a Chapter 13 bankruptcy stays on your credit for seven years. As time goes by, however, a bankruptcy’s effect on your scores slowly decreases.

    When you apply for credit, lenders might not OK your application unless the bankruptcy has been discharged. Even then, you might find it difficult to obtain certain kinds of loans. If your application does go through, you might be confronted by high interest rates and other less-than-favorable lending terms.

    Not Eligible For A Filing Fee Waiver

    The required means test assesses your income to see if it is less than the median in your state for your household size. If it is, you qualify for Chapter 7 bankruptcy and possible debt relief. However, you may pass the means test, yet still not qualify to have fees waived.

    If you dont qualify to have the fee waived, you could ask the court to spread out the cost in as many as four installment payments. That means filing Form 103A, Application to Pay the Filing Fee in Installments. Typically a down payment on the fees also is paid when the application is filed.

    Filing matters if you are having wages garnished to pay your debts, something that is not in the least enjoyable. Filing for bankruptcy, placing the down payment and applying for a payment plan will put an automatic stay on the ability of debtors to garnish your wages, which will help you pay those fees.

    If you are approved for this approach, do not play around with the payments make sure they are filed on time and as agreed to.

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    File Your Forms With The Indiana Bankruptcy Court

    Indianaâs Bankruptcy Court is divided into two districts: the Northern District and the Southern District. Each has its own guidelines for bankruptcy filers. Only attorneys can file bankruptcies electronically in the Northern District. But the Southern District has an Electronic Self-Representation filing system for individuals filing without an attorney, also called pro se filers. Depending on which district youâre filing in, you may be able to file by mail, in person, or by drop box. Delivery options may change because of COVID-19, so you should check the courtâs website or call the clerk to confirm delivery options.

    Print Your Bankruptcy Forms

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    Youâll need to print your completed bankruptcy forms in black ink on white letter-size paper. Print only on one side since the court wonât accept double-sided documents. Print out every required form, and sign every signature line. If you hire an attorney, youâll probably sign your forms in their office and the attorney will electronically file your case. Upsolve users get their forms in a downloadable packet, with markers showing where to sign.

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