Bankruptcy Indiana

After almost 25 years as a debt consolidation lawyer offering bankruptcy services in Indiana, I know that not always, but still sometimes, negotiation works. 

Apparently they think so in Alabama as well, because I just read in BusinessWeek that “If legislators accept the arrangement…it would end the biggest debt crisis in the municipal bond market”, which is the way Jefferson County, Alabama’s commissioner referred to a deal Jefferson County is making with its creditors.

In earlier Bankruptcy in Indiana articles I explained thatJefferson County (where Birmingham is) has been on the verge of bankruptcy for the past three years, with the problem being a debt the county owes on a major sewer project. By way of background, I explained that Chapter 9 bankruptcy for municipalities was enacted into law in 1991, adding that in the state of Indiana, where the four Zuckerberg bankruptcy law offices are located, there is no provision for a city or town or county to file bankruptcy.

While I’ve been following the Jefferson County story for years, I’m very interested in the fact that some of its major creditors, in particular JPMorgan Chase, have expressed a willingness to suffer big losses by forgiving some of Jefferson County’s debt.  I was discussing this with one of the Columbus bankruptcy lawyers who works in my office there; her “take” on the matter agrees with mine: the banks expect to receive more money through a settlement than they might using the bankruptcy process.

Even though I have never been involved in a municipal bankruptcy case, negotiating with creditors is very much a part of my work and the work of the good bankruptcy attorneys in Indiana who work with me.  Divorce and bankruptcy often involve negotiations, not only with creditors, but between the couple themselves. Careful bankruptcy planning, including prior negotiating with medical creditors and credit card companies, can make the divorce process simpler and less painful. Very often, offering bankruptcy help in Indiana includes working in cooperation with divorce attorneys in order to achieve the best result for all the family members. 

In some cases, Chapter 13 bankruptcy laws of Indiana can be used to help stop foreclosure.  But, even before our clients reach that stage, we analyze the whole financial situation and explore all the options for mortgage modification, including negotiating with lenders on their behalf.