Bankruptcy Indiana

After almost twenty-five years as a debt consolidation lawyer offering bankruptcy services in Indiana, I must say some things never change.  The field of bankruptcy law has undergone changes, sure, but the new bankruptcy laws in Indiana are still founded on the same basic principles.

One basic step in the bankruptcy process is pre-petition credit counseling.  The rule is that debtors must seek credit counseling at least 24 hours prior to filing bankruptcy.  (All of the clients who work with me or with my associates the Anderson, Bloomington, Indianapolis, or Columbus bankruptcy lawyers  who work in the Mark Zuckerberg bankruptcy law offices are helped through the credit counseling process in timely fashion.)

Today's case study, which happened in California, shows what can happen when the credit counseling requirement is not completed:

• C. filed Chapter 13 bankruptcy on November 30, 2009.
   
• C. asked for a waiver of the credit counseling, because his bankruptcy was an emergency, meant to stop the foreclosure on his home.
   
• C. explained that, 45 minutes prior to the foreclosure's scheduled time, he'd contacted a credit counseling agency.  He'd been told the counseling session would take at least 45 minutes to complete.  Since C. had no time to wait, he went ahead and filed bankruptcy.
   
• The bankruptcy court turned down C.'s request.  Their reasoning: The imminent foreclosure was an emergency, however, debtors need to show that they requested the counseling session at least five days prior to filing.
   
• C.'s bankruptcy case was not accepted by the court.

Since the purpose behind my blog is to offer bankruptcy information in Indiana, here's the most important piece of information I can possible bring to the attention of my Indiana bankruptcy clients and blog readers: 

Don't wait until it's too late.  Seek legal help at the very first signs of a financial downslide. Allow time for the bankruptcy safety net to work.

C.'s bankruptcy failed for one reason only - he tried so hard to save himself from foreclosure and bankruptcy that he waited too long for bankruptcy to save his home.  As someone who's advised tens of thousands of Hoosier individuals, families and small business owners on how to help their situation through the new bankruptcy laws of Indiana, I know what a crushing - yet probably unnecessary - disappointment this case must have been for C. and his family.

Each of the steps leading up to bankruptcy has a purpose - and each has its proper timing and paperwork that must be submitted. Going through the process in good time and in good order is the way to get relief through bankruptcy in Indiana!