Bankruptcy Indiana

The other day, I shared with Bankruptcy in Indiana readers that on Nov. 1 of this year, some new numbers went into effect.  The changes in fees for filing personal bankruptcy in Indiana will affect clients of the four Zuckerberg bankruptcy law offices, all of which are in the U.S. Bankruptcy Court Southern District of Indiana.

There are some other changes, though, that may have even greater an effect on Hoosiers. Those numbers have to do with the definition of “income” for the bankruptcy means test for both bankruptcy Chapter 7 in Indiana and for cases filed under chapter 13 bankruptcy law in Indiana.

The means test is used to determine whether you qualify for a Chapter 7, and, if not, whether your Chapter 13 debt repayment plan will include a three or a five year period.  The new numbers are based on data from the U.S. Bureau of Labor Statistics about the median income for each area of our country, and they make it at least a little more difficult to qualify.

One of the Columbus bankruptcy lawyers who is a Mark Zuckerberg colleague pointed out just one example: Prior to Nov. 1, a household of three needed to average $59,028 or less in income per year in order to qualify to file individual bankruptcy in Indiana using bankruptcy Chapter 7.  With the new numbers, if income is $57,696 or more, that debtor will need to look at filing under Chapter 13.  In other words, the requirements for filing bankruptcy in Indiana are getting more than a tad bit more challenging.

Of course, having served as a debt consolidation lawyer offering bankruptcy services in Indiana for twenty five years, I can reassure you that none of this new information is either surprising or daunting to me.  It’s all just part of keeping the bankruptcy system in tune with the real world of prices, and of treating all parties, both debtors and creditors, fairly.

It’s become routine: the numbers for Indiana bankruptcy change twice a year, in March and November, tracking government statistics. Practicing Indiana bankruptcy law, after all, is about two things: numbers and people.  And, whether we’re working on a mortgage modification to help stop foreclosure, offering payday loan debt help and student loan debt help, or taking clients through the process of filing small business bankruptcy in Indiana, we bankruptcy attorneys have to be good in both those areas (people and numbers).  In describing myself, I’d say "Mark Zuckerberg is a people person, but also a numbers guy!"