Bankruptcy Indiana

As you might imagine, a debt consolidation lawyer like me who offers bankruptcy information in Indiana needs to read a lot, and I certainly do.  In addition to newspapers, magazines, and professional journals on financial planning and tax law, I need to know what decisions are being handed down in bankruptcy courts in Indiana and other states.  That helps me stay up-to-date, so I can help my clients file individual bankruptcy in Indiana.

Whenever a personal bankruptcy in Indiana happens at or near the same time as a divorce, things can quickly become even more complicated.  Now we're dealing with two sets of laws: the new bankruptcy laws of Indiana, and Indiana divorce law.  A recent court case from Pennsylvania serves as a good example of what can happen when divorce and bankruptcy laws mix:

• P. received an "income maintenance award" of $88,500 as part of her divorce decree.
   
• P. had trouble keep up with her mortgage and other bills, so she filed Chapter 13 bankruptcy.
   
• P,'s bankruptcy attorney claimed that the maintenance award money was exempt from creditor's claims.
   
• One creditor challenged this, saying the money should go towards paying P.'s debts.
   
• The question was debated in court, with the final ruling being that P. was allowed to keep the money.
   
• The reasoning: The $88,500 was "not a division of property".  Instead, the award was intended to allow P. to maintain food, housing, and transportion during the transition period following the divorce. (Alimony is exempt from creditors in bankruptcy.)

Ask any of the bankruptcy lawyers in Columbus, Anderson, Bloomington, or Indianapolis who work in the Zuckerberg bankruptcy law offices - we've all had client cases where there seemed to be conflicts between divorce law and the new bankruptcy laws of Indiana. One lesson we've all learned is this:

If you're filing personal bankruptcy in Indiana and are also involved in a divorce, it's crucial for your divorce attorney and your Indiana bankruptcy lawyer to coordinate their efforts on your behalf.

Divorce and bankruptcy don't mix easily, but real life being what it is, the two often do mix! Having both attorneys on the "same page" may mean a much better outcome for all concerned!