Bankruptcy Indiana

Knowing my work with homeowners in debt, a friend's parents shared an article from their AARP magazine called "Focusing On Foreclosures".  According to a statistic from the Mortgage Bankers Association quoted in that article, more than 31,000 Indiana homes were in foreclosure during the first quarter of 2008 alone!  As a bankruptcy attorney in Indiana for twenty-plus years, I'm often asked whether bankruptcy always involves foreclosure, and whether foreclosure can help avoid bankruptcy. In an earlier bankruptcy blog, Dis Or Dat? Foreclosure Or Bankruptcy?, I explained that each client's situation is different.  When I meet with folks in one of my Indiana bankruptcy law offices, we discuss all options that can help them get a handle on their financial problems.  The best plan might mean allowing a foreclosure (or using a Deed in Lieu of Foreclosure or Short Sale strategy), or it might involve keeping the home and using a Chapter 13 bankruptcy repayment plan.

The AARP article focused on the Indiana Foreclosure Prevention Network, which is a partnership among government, the private sector, and community groups (including AARP).  The IFPN developed a hotline that is available for calls from consumers twelve hours every day of the week, and also has a website that provides debtor information and education.  The organization holds events to bring debtors and lenders face to face to try to work out settlements and avoid foreclosure.

My own experience in dealing with literally tens of thousands of individuals in debt has taught me one important lesson that I try to convey to readers in all my bankruptcy blogs.  That same lesson is emphasized in the AARP article in a quote from Sherry Seiwert, executive director of the Indiana Housing and Community Development Authority: "The earlier they call, the better we will be equipped to assist them," she states.  And I, veteran bankruptcy attorney Mark Zuckerberg, say, "Amen to that!"