Bankruptcy Indiana

Usually, when I'm talking about cars and bankruptcy, the issue is helping consumers recover a car that's been repossessed.  I've detailed in these Indiana bankruptcy blogs how, if you file a Chapter 13 bankruptcy before the dealer has sold your car at auction, the creditor will have to return the vehicle.  A big part of the work I do is help clients keep their cars, especially when a car makes the difference between their being able to work or not.
 
Lately, though, talk about bankruptcy and cars seems to center around the car companies, particularly Chrysler and GM. Indianapolis Star reporter Ted Evanoff refers to the "shockwaves from Chrysler's bankruptcy" that hit several Indiana dealerships two weeks ago. 

As both Chrysler and General Motors struggle for corporate survival, those shockwaves are affecting owners and workers in dealer showrooms, in garages, corporate offices, and supplier shops. More jobs will almost certainly be lost in addition to all the layoffs we've already experienced here in Indiana.  GM plans to close 2600 dealerships around the country, and it's already been announced that several Chrysler dealerships have lost their franchise.

If you're one of the newer visitors to my Indiana bankruptcy blog, perhaps you're making the mistake of thinking layoffs and closings are good news for bankruptcy attorneys.  In fact, just the opposite is the case.  Income is absolutely essential for the bankruptcy system to fulfill its purpose of providing a safety net for those faced with insurmountable financial challenges.  The most important part of the bankruptcy process is the last phase, when consumers emerge from bankruptcy and begin to rebuild their financial lives.  Without jobs, that emerging phase cannot happen.

That's why I was very encouraged to hear of a new venture partnership between an Indiana recreational vehicle manufacturer, Gulf Stream Coach, and a California Company called Electric Motors Corporation.  These two companies announced they will invest more than $80 million to build fuel-efficient, light-duty pickup trucks, plus power train systems for hybrid and plug-in cars. The manufacturing plans will be in northern Indiana, and 1000 jobs will be added in the next two years.

Others companies announced promising plans as well, including Bright Automotive in Anderson, Indiana (where my Anderson bankruptcy law office is located), EverDel in Indianapolis, and Honda in Greensburg.  All these companies have plans for "green vehicle" manufacture, and all plan to add jobs.

It's beginning to look a lot like…well, not just like a lot of bankruptcies, layoffs, and foreclosures, but a lot like opportunities for rebuilding after bankruptcy and foreclosure!