Bankruptcy Indiana

I've been writing this Indiana bankruptcy blog for almost three years now. My purpose is to provide bankruptcy information in Indiana, so, whenever a blog reader poses a question that I think might be interesting to other blog readers and to bankruptcy clients, I try to share my answer in a blog post.  I know that not only are the bankruptcy laws in Indiana constantly changing, but that as real life situations arise, readers need to know how the laws apply in their specific instances.

This week, I received two reader questions about topics beginning with "L".  The first reader wants to know about "motions to avoid liens" and whether any kind of Indiana bankruptcy help can apply to liens.  As a debt consolidation lawyer offering bankruptcy services in Indiana for more than twenty years, I can answer that one with a big "Yes".

The lien itself is a legal claim.  Someone sued you and obtained a judgment against you, with the lien attached to property you own.  Where bankruptcy law comes in is that, if a lien is attached to a debtor's assets that are exempt under Chapter 13 bankruptcy laws or Chapter 7 bankruptcy laws in Indiana, the lien can be stopped. The way that's accomplished is by filing a paper with the bankruptcy court called a "Motion to Avoid Lien". 

The second "L" question from a reader of my bankruptcy blog has to do with "Life Leases" and how bankruptcy law in Indiana affects them.

By way of background, retirement apartment communities sponsored by religious or other nonprofit groups may allow tenants to own life leases on their apartments.  Typically residents pay an entrance fee, then pay rent and maintenance each month.  The lease is usually for the rest of the tenant's life.  If the tenant leaves or dies, the lease is sold to someone else by the sponsoring organization (some leases allow the interest to pass to heirs).

At any point in time, the lease is considered property owned by the tenant, having a dollar value.  The value of a life lease can be calculated by an actuary based on the tenant's life expectancy.  When it comes to a tenant filing bankruptcy, the lease is counted as an asset, along with whatever other assets the debtor might own.  The bankruptcy judge will take everything into consideration in deciding whether to discharge any debts.

It's interesting to me that two rather technical questions about two topics beginning with "L" were asked in the same week.  In both situations, debtors would need expert professional advice and help.  Neither liens nor life leases are do-it-yourself propositions!