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:
- utility bills
- 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.
Bankruptcy Laws In Indiana
While many of the laws that govern bankruptcy in Indiana are federal, there are some state laws you need to be aware of as well. Lets run through everything you need to know about bankruptcy laws in Indiana.
If you are declaring a Chapter 7 bankruptcy in Indiana, you have to make sure your income passes a means test. In other words, your income level will determine how you can move forward. If you earn less than the Indiana median income for your household, you can move forward automatically. But if you dont, there are some hoops youll have to jump through to qualify.
Before filing bankruptcy in Indiana, you must attend a credit counseling service session and take a debt management course. Each district in Indiana has approved places where you can do these things.
Its important to note that you may not be able to exempt all your property from bankruptcy in Indiana. The appointee who is overseeing your bankruptcy case will make a decision when it comes to all your nonexempt property and whether or not you have to sell it to satisfy outstanding debts. Its also good to note that its possible to file a joint bankruptcy to double your exemption amount, but if only one of the spouses has ownership of the property, it cannot be doubled.
Working With An Attorney
Most of the time, it is usually in ones best interest to work with a bankruptcy lawyer. A bankruptcy lawyer is there to represent you and not the creditors.
An attorney is also accustomed with exemption laws. Plus, they can come up with creative strategies to keep your assets through practical repayment strategies that are fair to everyone involved.
While you may have the fight and ability to manage a Bankruptcy on your own, it tends to make things a lot easier on an already stressful situation, especially when there is so much at stake.
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Jim Nelson Named To Nrd Hall Of Fame
Jim Nelson of Cairo, a 47-year member of the Lower Loup Natural Resources District Board of Directors, has been named to the NRD Hall of Fame. The announcement was made at Husker Harvest Days near Grand Island on Wednesday, September 18.
Nelson was nominated for the honor by the Lower Loup NRD. He retired in August as the last NRD Director in the state to serve from the first day of the Natural Resources District system.
Through his nearly five decades of service, Nelson has served as Board Vice-Chairman and on the Governors Water Policy Task Force, representing surface water users in the Loup River system. He also served on various NRD committees.
Nelson, following the announcement, said he felt stewardship of the Earths water and soil was essential. He thanked his wife, Marilyn, and their family, for the work they did at home which allowed him to participate in the activities of the LLNRD.
Nelsons history of natural resources conservation did not just start at the LLNRD. He was previously a member of the Howard County Soil and Water Conservation District. That District merged with other county SWCDs and agencies when NRDs were implemented in 1972.
Nelson is the second Lower Loup NRD Board member to be inducted into the NRD Hall of Fame. Another original board member, Dean Rasmussen, was inducted in 2017.
Chapter 13 Bankruptcy Indiana
Chapter 13 bankruptcy Indiana is a payment plan bankruptcy where your debts are reorganized via the bankruptcy court, often in a 3 or 5-year payment plan. One of the most important questions is determining your monthly plan payment. Once you have a sense of your plan payment, you compare that payment to your current monthly obligations to see whether you may afford Chapter 13 bankruptcy. Debt settlement is often an alternative to a Chapter 13 bankruptcy. For a deep dive on Chapter 13 bankruptcy, you may want to check out the article titled Chapter 13 Indiana
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What Is Chapter 7 Bankruptcy
Chapter 7 is known as the liquidation bankruptcy because it discharges most of your unsecured debt. That includes , medical bills and personal loans.
Its the quickest, simplest and most common type of bankruptcy. According to the American Bankruptcy Institute , 63% of the 774,940 bankruptcy cases filed in 2019, were Chapter 7.
An even more encouraging bankruptcy statistic: 94.3% of Chapter 7 filings had their debts discharged, meaning forgiven.
You must pass a means test to qualify for Chapter 7 filing. The bankruptcy means test examines financial records, including income, expenses, secured and unsecured debt to determine if your disposable income is below the median income for your state. The means test income level varies from state to state.
You might be forced to sell any non-exempt assets, though several online sites claim that 96% of Chapter 7 filings are no asset cases, meaning there is not enough equity or value in the property for a trustee to sell it and pay off creditors.
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Meet With A Vigo County Indiana Bankruptcy Lawyer
When youre thinking about taking the leap to declare bankruptcy, contact a Vigo County, Indiana bankruptcy lawyer at Rowdy G. Williams Law Firm for the legal help you need. You can fill out the quick contact form provided at the bottom of this page or give our office a call at 812-232-7400 to schedule your free case review.
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Bankruptcy Is Not A One
For most people, bankruptcy seems like a last-case scenario something you only want to do once in your life, if that. The truth is, though, it is simply a legal tool, and one that can be very beneficial if you find yourself in dire financial straits.
With everything that has happened in the last twelve months, many people are curious as to whether they might be eligible for bankruptcy. Those who have previously filed or had a successful bankruptcy discharge may be concerned about whether they will be eligible to do so again, and what the time frame regarding their right to another filing might be.
Since the goal of bankruptcy is the discharge of debt and the relief from overwhelming financial strain, there are technically no laws regarding how many times a person can seek this relief during their lifetime. When it comes down to it, the question is less of how many times you can file for bankruptcy, but how many times and how often you can receive a discharge of your debts.
Chapter 7 Bankruptcy Indiana
As Chapter 7 is the most common consumer bankruptcy filing, we will cover this bankruptcy first. In order to file Chapter 7 bankruptcy, you have to go through means-testing. The means test was added to the Bankruptcy Code in 2005 to prevent bankruptcy fraud. The income requirement for Indiana helps ensure that a person with a sufficient income to pay back some of the debts may file a Chapter 13 instead of Chapter 7.
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Filing For Bankruptcy In Indiana
Indiana, as with every other state, has its own particular regulations regarding protection of assets for debtors who file for bankruptcy. Its therefore important to be aware of all of the exemptions provided by state law in order to receive the maximum benefits allowed.
Indiana Bankruptcy Process How To File Bankruptcy In Indiana
2005 Bankruptcy Act Credit Counseling The 2005 Bankruptcy Act requires all individual debtors who file bankruptcy on or after October 17, 2005, to undergo credit counseling within six months before filing for bankruptcy relief and to complete a financial management instructional course after filing bankruptcy.
2005 Bankruptcy Act Means TestUnder the 2005 Bankruptcy Act your income and expenses will be analyzed to determine if you qualify to file a Chapter 7 or if you must file Chapter 13. To apply the means test, the courts will look at the your average income for the 6 months prior to filing and compare it to the median income for Indiana. If the income is below the median, then you may choose Chapter 7. If your income exceeds the median, the remaining parts of the means test will be applied to determine if you can file Chapter 7 or if you must file Chapter 13.
Gathering PaperworkTo begin the bankruptcy process you must itemize your current income sources major financial transactions for the last two years monthly living expenses debts and property . You should also collect your tax returns for the last two years, deeds to any real estate you own, your car titles, and the documents for any loans you may have.
The cost for filing a Chapter 7 bankruptcy is $306. This fee may not be waived but you may be able to pay it in installments. The fee of $281 for a Chapter 13 bankruptcy cannot be waived.
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A Indiana Trustee Is Assigned To Your Bankruptcy Filing
A bankruptcy trustee is assigned to your bankruptcy case to review the paperwork and look for non-exempt belongings that you may own. You have to submit such forms as a recent tax return to the trustee. If you have non-exempt belongings, the trustee may manage the sale and liquidation of those belongings.
See the Chapter 7 and Chapter 13 trustees in Indiana for bankruptcy district, name and contact information. As a Chapter 13 bankruptcy is much longer, you may have more interaction with the Chapter 13 trustee or someone from his/her office.
Understand Alternatives To File Bankruptcy
There are many bankruptcy alternatives to consider. We will cover the two most common alternatives, but you can find more in our bankruptcy alternatives article. As a reference, filing Chapter 7 bankruptcy is often the least expensive and the shortest.
Debt settlement is also known as debt negotiation, debt relief, or a debt consolidation program . In debt settlement, a company or you will negotiate with your creditors for a lower amount. You can save money and avoid filing bankruptcy. You may also be exposed to lawsuits, so its important to understand which creditors are likely to sue. A debt settlement programs often last 2 5 years.
Debt management is also known as credit counseling. In debt management, a company will negotiate with your creditors for a lower percentage interest rate. You can save money on interest and avoid filing bankruptcy. Debt management can be more expensive than debt settlement and Chapter 13. Debt management programs often last 5 years.
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How To Protect Your Property During Bankruptcy
In most cases, debtors do not automatically get to keep exempt property. Debtors must follow specific steps to protect property applicable in Indiana exemption laws. Failing to file the required paperwork could cause you to lose your assets.
Need help protecting your assets during bankruptcy? Contact our Indianapolis bankruptcy lawyers today at 713-5148 to schedule a consultation!
- 6520 E. 82nd St. Suite 101Indianapolis, IN46250
- 48 N. Emerson Ave., Suite 300Greenwood, IN46143
- 1106 Meridian St, Suite 459Anderson, IN46016
- 5550 Lafayette Rd, Suite 400Indianapolis, IN46254
- 225 N. High Street, Suite 2CMuncie, IN47305
Filing Bankruptcy Alone Vs Filing With An Attorney
Current bankruptcy laws do not require individuals to hire a lawyer to declare bankruptcy relief. People are permitted to represent him or herself as a pro se debtor. You will simply contact the local bankruptcy court and obtain all forms and requirements directly through them. Going it alone is not an easy task.
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How Do I Choose Between Chapter 7 And Chapter 13
Chapter 7, also called a liquidation bankruptcy, often appeals to people with low incomes who have very few assets. It can wipe out a backlog of medical bills, credit card debts, and other unsecured debt. An automatic stay, or hold, prevents your creditors from bothering you for a period of time while a trustee reviews your situation to determine if there are any non-exempt assets to liquidate to pay your creditors something. Chapter 13, or reorganization bankruptcy, is a good choice for people who have enough income or assets that disqualify them for Chapter 7 but are still unable to meet their debt obligations. Chapter 13 is usually a better fit for homeowners behind on their mortgage, because it allows them to catch up on mortgage payments without losing their home.
Qualifying For Bankruptcy In Indiana
If you’ve never filed for bankruptcy before, you’ll meet the initial requirement. Otherwise, check whether enough time has passed to allow you to file again. The waiting period varies depending on the chapter previously filed and the chapter you plan to file. Find out how long you’ll need to wait if your situation involves multiple bankruptcy filings.
You’ll also need to meet specific chapter qualifications.
You’ll qualify for Chapter 7 bankruptcy if your family’s gross income is lower than the median income for the same size family in your state. Add all gross income earned during the last six months and multiply it by two. Compare the figure to the income charts on the U.S. Trustee’s website .
Want an easy way to do this online? Use the Quick Median Income Test. If you find that you make too much, you still might qualify after taking the second part of the “means test.” If, after subtracting expenses, you don’t have enough remaining to pay into a Chapter 13 plan, you’ll qualify for Chapter 7.
Qualifying for Chapter 13 can be an expensive proposition because the extra benefits come at a hefty price, and many people can’t afford the monthly payment. To qualify, you’ll pay the larger of:
How To File Bankruptcy: The Conclusion
Bankruptcy is a detailed process that can be compared in complexity to Filing your Federal Tax Returns x 25. Unless you have an have an extremely simple situation, are VERY good at legal and government paperwork, absolutely have no source of income then it is ALWAYS without exception EXTREMELY easier and probably more affordable in the long run to just hire an reliable attorney to do it for you. Various areas of bankruptcy law are not easy to understand: this can play out to create serious, costly, and time consuming problems when doing a case on your own. Although we attempt to explain How to File Bankruptcy in Indiana here, we recommend that you use this to UNDERSTAND the process and then hire an affordable, friendly bankruptcy attorney office such as our office. We can help you get through the process!
What You Can Protect During A Bankruptcy
Certain states allow the debtor to choose between their specific state exemptions and the federal bankruptcy exemptions, but Indiana is not one of those states. In Indiana a debtor must use the Indiana state bankruptcy exemptions. However, in Indiana, married couples who are filing together in joint bankruptcy are permitted to double the state exemption amounts.
Two common questions/concerns for individuals who are contemplating filing for bankruptcy are: will I lose my home and will I lose my car? The Indiana exemptions do protect those two vital assets.
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Bankruptcy Forms For Jeffersonville Indiana
There are about 23 federal forms involved in a bankruptcy filing, not including the local and optional forms that you might need for your case.
The Petition is a series of different forms that outline your financial resources and obligations. It is how you show that you are unable to make ends meet. At filing, you will need to present a few other documents including your certificate of financial counseling, your redacted tax returns and pay stubs.
For a comprehensive overview of the voluntary petition, A/B, C, D, E/F, G, H, I, J, or other forms read theIndiana guide for bankruptcy forms. Below are details for state and local unique forms.
If you feeel overwhelmed or want assistance,check out Upsolve’s free bankruptcy assistance and see if youâre a good fit for our service. We have a free service that makes the bankruptcy process super simple for residents of Indiana.
What Are Bankruptcy Exemptions
Specific states have certain exclusions that are enacted by congress as federal bankruptcy exemptions for filers. These exemptions will determine what you are able to retain throughout and after Chapter 7. In a Chapter 13 situation, the exemptions will determine what amount you will have to pay certain financial institutions in your repayment plan.
- Real or personal property used as a residence up to $19,300 equity in real estate held as tenants by the entirety might be fully exempt if only one spouse files .
- Spendthrift trusts.
- Health aids funds in medical savings accounts and health savings accounts up to $350 of intangible personal property
- Education savings account contributions made more than 2 years prior to filing other conditions apply.
- Either 75% of earned but unpaid wages or 30 times the federal minimum hourly wage, whichever is greater. A judge may approve more for low-income debtors.
- Tax exempt retirement accounts s, 403s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans).
- IRAS and Roth IRAs .
- Public employees.
- Employers life insurance policy on an employee.
- $10,250 of real estate or tangible personal property.
Want to know if you can include Student Loans in Bankruptcy or Medical Bills in Bankruptcy? Check out our Bankruptcy FAQs section.
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