Indianapolis Bankruptcy Attorney

Leaves are falling, temperatures are dropping, and, as all good bankruptcy attorneys in Indiana know, numbers are changing. As a longtime debt consolidation lawyer offering bankruptcy services in Indiana, by now I’m used to these twice-yearly shifts.

There are actually a number of ways in which the new numbers (in effect for cases filed under Indiana bankruptcy law on or after November 1 of this year) affect the planning I do with clients.

First, let’s talk about the means test, which is a sort of measuring stick the courts use to determine who’s eligible to file under the new bankruptcy laws in Indiana, and for what type of bankruptcy each debtor qualifies. As one of my Columbus bankruptcy lawyer colleagues always points out, the numbers are not the same in every state.

In Indiana, a one-person household can have income up to $39,987, with anything above that amount meaning that person can be disqualified from seeking relief under bankruptcy Chapter 7 in Indiana. A two-person household, by comparison, is allowed to have up to $49,669 in income, while a four-person household may have up to $67,296 and still file a Chapter 7. For every extra person in the household above four, $7,500 is added to the allowable income number.

The counting continues beyond income dollars, however, and gets far more detailed, using different numbers depending on which Indiana county the debtors live in. Depending upon family size, there is a dollar figure for how much money may be kept each month by the debtor for the mortgage or rent payment, for non-mortgage expenses, and for car-related expenses.

The four Zuckerberg bankruptcy law offices are located in Indianapolis, Columbus, Bloomington, and Anderson, serving 60 different counties, so knowing the precise numbers becomes very important to us as we offer Indiana bankruptcy help.

So, for example, in Marion County the monthly allowance for mortgage or rent (for a one-person household) is $777, while in Shelby County it’s $743. The monthly non-mortgage allowance in Brown County is $417, as compared to $384 in Marion County. The financial standards are broken down into even finer categories for food, housekeeping supplies, apparel and services, personal care products and services, and miscellaneous. Health care expenses have allowances that are different for those under or over age 65.

Whether my clients need payday loan debt help, student loan debt help, help to stop foreclosure on their home, or are considering filing small business bankruptcy in Indiana – I need to be counting heads and dollars. And, whether my clients are filing bankruptcy Chapter 7 in Indiana or filing under Chapter 13 bankruptcy law – I need to be counting income and expenses. In the end, it all boils down to numbers and people!

Just two weeks ago, on Nov. 1, new numbers went into effect for bankruptcy in Indiana. The changes will affect clients of the four Zuckerberg bankruptcy law offices, all of which are in the U.S. Bankruptcy Court Southern District of Indiana.

The filing fee for bankruptcy Chapter 7 in Indiana went from $299 to $306, while the fee applying to Chapter 13 bankruptcy law in Indiana went from $274 to $281. These filing fees are paid directly to the bankruptcy court, usually at the time the debtor files a case.

I’ve been a debt consolidation lawyer for a very long time now, just about 25 years, in fact.  Yet I realize that many of my Bankruptcy in Indiana readers may not understand that these filing fees I’m talking about are separate from and in addition to attorneys’ fees.  Indiana lawyers for bankruptcy charge fees for representing clients, preparing their paperwork and guiding them through the process of filing personal bankruptcy in Indiana.

Basically, the cost for having a bankruptcy attorney in Indiana help you is going to depend on how complicated the case is. In fact, that’s one of the reasons every one of my colleagues, including the Columbus bankruptcy lawyers and the attorneys in Indianapolis, Anderson, and Bloomington, all offer free consultations to new clients.  That way, there’s the opportunity to discuss all the details of your case and evaluate it before quoting any fee. 

Are you going to need student loan debt help?  Help to stop foreclosure? Payday loan debt help? Is small business bankruptcy in Indiana going to be involved?  Are there properties or other assets that are going to need appraisals?  Is a spouse and/or a business partner involved? Is it going to be more appropriate to file under Chapter 13 bankruptcy law or to file bankruptcy Chapter 7 in Indiana?

The basic level of attorneys’ fees, just like the filing fees, is set by the courts.  There are differences among Indianapolis bankruptcy lawyers, for example, in how they are willing to receive their fees – up front or as part of, say, a repayment plan under Chapter 13 bankruptcy law in Indiana.

“Adjustments for rising costs of living are not unusual in the bankruptcy world”, as one San Jose attorney points out. However, for many debtors, the benefits of the Indiana bankruptcy safety net most certainly outweigh those costs!

The fear that if you file personal bankruptcy in Indiana, “everyone will know” is based on a common bankruptcy myth. When it comes to politicians, now, that may not be a myth after all!

When Chris Tibbs filed bankruptcy Chapter 7 in the state of Washington six years ago, only the closest friends with whom he chose to share the information (and Tibbs’ attorney for bankruptcy, of course) knew anything about it. No one was really interested. It’s only now, because Tibbs is a political candidate for the office of Kitsap County commissioner, that the story of his earlier bankruptcy is making headlines.

At the Zuckerberg bankruptcy law offices, questions about publicity arise all the time, but in actual fact, it’s very rare for anyone’s individual bankruptcy in Indiana to be of interest to anyone beyond that person’s creditors. That means that if you don’t want everyone to know you’ve filed, you need do nothing more than keep the information to yourself!  To a great degree, the same holds true for small business bankruptcy in Indiana. 

In fact, the Chris Tibbs bankruptcy in Washington State was related to a small business, a coffee stand business, for which Tibbs purchased supplies with personal credit cards. Because Tibbs borrowed money in his own name, and since he did not establish a corporation, he had no protection of his personal assets against creditors’ claims.

That brings me to a second myth that I’ve frequently encountered over the 25 years I’ve been a debt consolidation lawyer offering Indiana bankruptcy help – the myth of the “corporate veil”. One of my Columbus bankruptcy lawyer colleague says she sees this a lot - clients who believe they can file small business bankruptcy in Indiana without also filing personal bankruptcy in Indiana. If, unlike Tibbs, they had a corporation, they ask, why can’t they keep their personal finances out of the corporate bankruptcy? They don't need help to stop foreclosure, they don't need student loan debt help, and certainly not payday loan debt help, they say.  So what does their business have to do with their personal affairs?

Here's why their business has a lot to do with their personal affairs:

• They guaranteed business loans or lines of credit with their personal assets.
  
• They put personal money into their business, including money taken out as home equity loans.
  
• They withdrew money from their business for personal use.
  
• They signed contracts and agreements for the business in their own name.

Some clients give away their own privacy.  And some business owner clients pierce their own corporate veil!

As any good bankruptcy attorney in Indiana can tell you, one of the biggest fears surrounding filing personal bankruptcy in Indiana is this:   EVERYONE WILL KNOW!  In other words, it’s the fear of having our privacy compromised that unfortunately deters many people from making use of the safety net provided through individual and small business bankruptcy in Indiana.

The reality about bankruptcy is, (as tends to be the case with most myths), very different. Unless you happen to be a very prominent person, the chances are very high that the only people who will know you’ve filed individual bankruptcy in Indiana will be the ones you tell!
At the Zuckerberg bankruptcy law offices, we know that, whether you need help to stop foreclosure, payday loan debt help or perhaps even student loan debt help, you don't need to allow the myth of "people knowing" stop you from getting the help you need.

Awhile back in these Bankruptcy in Indiana articles, I told the true story of a woman whose car was towed, ending up with a credit collection company requesting a credit report on her. Since there was no credit transaction going on at the time, only Maria herself had the right to request a credit report, and she was able to sue both the collection agency and the credit bureau for violating her privacy rights.  Point being, all the privacy laws that were the basis for Maria’s lawsuits will continue to protect you through the process of filing (either bankruptcy Chapter 7 in Indiana or under the Chapter 13 bankruptcy laws in Indiana), as well as afterwards.

What made me particularly think about privacy issues relating to bankruptcy is a story that one of the Columbus bankruptcy lawyers showed me, written by a guy named Ced Kurtz who calls himself TechMan.  The title of the article is “Bankruptcy can compromise your privacy.”  

Now, Kurtz wasn’t contradicting any of the things I’ve just finished saying about an individual’s privacy rights in the process of filing bankruptcy in Indiana – or elsewhere.  He was talking about the Borders book stores’ corporate bankruptcy. Kurtz explained that Borders’ assets were put up for auction to pay off creditors, with one of those assets being its customer lists, including credit card information.  He was concerned that, in transferring the Borders assets to a buyer, customers’ information might be compromised.  The Federal Trade Commission apparently agreed, dictating that customers need to sign individual consent forms before their information could be transferred.  Meanwhile, Kurtz urges you and me to pay attention – and opt out of any transfer of our information.

So, while each of us needs to be careful to protect our own privacy, the laws, including the new bankruptcy laws of Indiana, are out to do exactly that for us!

Bankruptcy judges have the power to “discharge” debts, but, as I’ve often cautioned readers of these Bankruptcy in Indiana articles, there are some debts that, under the new bankruptcy laws of Indiana, cannot be forgiven.

The most well-known examples of bankruptcy “cant’s” include:

•  Child support and alimony payments
•  Most student loans
•  Certain taxes
•  First mortgage arrears
•  Criminal or other legal penalties and fines

There’s one kind of debt related to filing personal bankruptcy in Indiana that isn’t so well-known, and it involves condo or homeowners’ association fees in bankruptcy Chapter 7 .  As a longtime debt consolidation lawyer offering bankruptcy services in Indiana, I’ve found that few clients realize that their monthly fee is one obligation that can’t be forgiven through filing Chapter 7 personal bankruptcy in Indiana.

The subject of delinquent homeowners’ fees is actually a subject that comes up quite often in the work we do in the Zuckerberg bankruptcy law offices to help stop foreclosure.

As Susan Jenkins points out in BroadNeck Patch, the homeowners’ association has the law on its side and can sue a homeowner (even one who’s vacated the property) for unpaid monthly fees. While this unpleasant legal fact is not commonly known by homeowners, all the good bankruptcy attorneys in Indiana who are my colleagues are very aware of the law and take condo and homeowner fees into account when filling out the list of expenses and debts as part of the process of filing bankruptcy.

In many locations, including the Indianapolis, Anderson, Columbus, and Bloomington, Indiana areas where I practice law, joining the homeowners’ association is mandatory when purchasing a home or condo.   In the event the fees are not paid, the association could sue, and then legal fees would add to the money owed on back payments.

As a certified consumer bankruptcy specialist, I understand that it all comes back to the importance of dealing with debt early on, rather than putting off facing financial problems.  Condo fees, it turns out, are one of the few but important “can’ts” in the bankruptcy “can”!

Even the best bankruptcy lawyer in Indiana gets frustrated working to help stop foreclosure.  Oh, as a longtime debt consolidation lawyer, I understand the problems.  Every day at one of the Zuckerberg bankruptcy law offices, we’re sure to hear one or more versions of the old story:

• You have an ARM mortgage about to reset at a rate you can’t possibly afford.
  
• You were told your mortgage can’t be modified because you have lender-paid private mortgage insurance.
  
• Your lender lost your paperwork and you have to start from scratch.

So, can an experienced lawyer for bankruptcy in Indiana help stop foreclosure? Yes. Oh yes!

In earlier Bankruptcy in Indiana articles, I used stories about celebrities who went through foreclosure to illustrate some important points about the process.  It’s very rare in my own work as an Indianapolis bankruptcy attorney for me to deal with celebrities, but I can use national news stories about foreclosure to provide Indiana bankruptcy information and explanations of how the process works. 

Back in 2010, for example, I was writing about actor Nicholas Cage, who went through three foreclosures because he owned back taxes and penalties.

As my colleague the bankruptcy lawyer in Columbus  always reminds her clients, foreclosure and bankruptcy are two separate legal processes, but both play a role in debt situations. A recent news story brings out this point very well.  Foreclosure papers were filed against “Rush Hour” star Chris Tucker, after the IRS imposed a lien on the home in Florida to collect back taxes.

Bankruptcy cannot discharge taxes or mortgage arrears.  These are two realities that even multimillionaires like Cage and Tucker must face.  In our practice of Indiana bankruptcy law, we must get our clients to face the fact that the IRS can put a lien on their property, including the money in their bank account, and can also garnish their wages.

If all that is true, then why do I say “Yes,. Oh, Yes!” when referring to my practice as an Indiana bankruptcy attorney? Because we can help.  We analyze your situation, have skilled appraisals run on your property, and become your legal negotiators with the mortgage company, the bankruptcy court, and even the IRS.  The result is a plan. Your circumstances may be far from ideal, but plan beats no-plan any day!

What does child support have to do with bankruptcy in Indiana? A lot.  Just half a month ago, a special six-week Indiana amnesty program called “Stop Delaying – Start Paying” was concluded.  Every one of the Anderson, Bloomington, Indianapolis, and Columbus bankruptcy lawyers in the Zuckerberg bankruptcy law offices was at least indirectly involved with that child support amnesty program.

Under the new bankruptcy laws of Indiana, obligations of child support are not changed at all by bankruptcy.  As a debt consolidation lawyer offering Indiana bankruptcy help, this means several different important things to my clients:

• Back child support debts cannot be discharged through bankruptcy.
  
• If my client is a single mom, she can be assured her ex-husband will not be able to use bankruptcy to avoid paying the support obligations.
  
• If my Zuckerberg bankruptcy law office client is the non-custodial father, it means he must get current with his child support payments in order to have his application to file under Chapter 13 bankruptcy law in Indiana approved.
  
• The bankruptcy automatic stay, which halts most collection efforts, will NOT apply when it comes to child support.
  
• When we’re assisting clients with the bankruptcy paperwork, we deal with the “means test”, which determines how much income debtors are allowed to keep for their own support. If my client has child support payments to make, he or she may be excused from paying other creditors.

The Marion County Prosecutor’s office’s amnesty program was designed to help those who’ve fallen behind in their payments to catch up and get back on track.  That goal is very much in tune with my goals as an attorney for individual bankruptcy in Indiana – help people make a fresh financial start!

 

“In today’s economic climate, it comes as no surprise that millions of Americans are facing unprecedented financial challenges.  One group, however, has been hit especially hard: seniors,” Elizabeth Brennon points out in News Junky Journal, adding that many retired Americans are seeking relief in bankruptcy court.

All the good bankruptcy attorneys who work in the Zuckerberg bankruptcy law offices have been reading the statistics about the number of older Americans filing bankruptcy.  Truth is, we don’t need to read about these numbers – we’re seeing them every day in our offices, and the Anderson, Bloomington, Indianapolis and Columbus bankruptcy lawyers are all experiencing those statistics first hand.

One AARP statistic, though, startled even us: The rate of bankruptcy filings for Americans between the ages of 74 and 84 jumped 433% from 1991 to 2007! 

Coming up on 25 years as a debt consolidation lawyer offering bankruptcy help in Indiana, I
Agree with Debb Thorne of creditslips.com that medical expenses play a large role in the financial problems of seniors. Sometimes parents go into debt to help adult children who’ve been hit with major hospital bills. 

Of course, rising costs of food and gasoline play a part in the problem as well. But to tell the truth, what upsets me most is seeing older Hoosiers fall victim to scams and predatory credit card offers.  It’s not uncommon for my colleagues and I to see senior citizens coming to us for help to stop foreclosure, and, more startling, for payday loan debt help. One eldercare lawyer in New York quotes data from the Elder Law Journal showing that those over 65 account for 7% of all bankruptcy filings in the country!

What I have personally found in talking with older clients considering filing personal bankruptcy in Indiana is that they have believed in a bankruptcy myth.  That myth is simply that filing bankruptcy is a sign you don’t handle finances responsibly. The fact is, most people file for bankruptcy because of circumstances beyond their control.

There is no upper age limit for bankruptcy.  For the past twenty five years, I’ve been able to offer that reassurance: the bankruptcy safety net is there whenever in life it’s needed!

Looking back, I realize that my article in Bankruptcy in Indiana earlier this week was focused on the negative, or at least preparing for a negative event such as a job loss. As a debt consolidation lawyer who’s practiced Indiana bankruptcy law for decades, I wanted to emphasize the crucial role income from jobs plays in successfully emerging after filing either personal bankruptcy in Indiana or even in emerging after small business bankruptcy in Indiana.

Today’s article, by contrast is about two happy endings to corporate bankruptcy, one in Indiana, the other in Pennsylvania.

Less than one month ago, a company called Capmark Financial (a real estate finance company headquartered in Pennsylvania), was able to emerge from bankruptcy.  Notes, bonds, and approximately 100 million shares of the company’s stock were distributed to creditors to whom the company owed money, and a plan was agreed upon to make payments of both principal and interest on the notes and bonds.

Exactly as happens with personal bankruptcy in Indiana, the bankruptcy process “bought time” for Capmark to get its financial affairs organized, to work out a plan that would treat all the parties equitably, including the shareholders, the creditors, the employees, and the executives.  In precisely the way all my colleagues in the Zuckerberg bankruptcy law offices see every day in our work, bankruptcy serves as a “cooling off” period, so that a plan can be worked out without pressure from creditors.

The second story is one the Anderson bankruptcy lawyers and I have been following for the past year and a half. In March, 2010, the Chapter 11 bankruptcy of Hoosier Park in Anderson was the featured story in Bankruptcy in Indiana. At that time, the company (parent company Centaur, LLC) and its lenders agreed to work together to keep the business going, allowing the company to pay its debts over time.

By way of reminder to readers, Chapter 11 bankruptcy in the corporate world is parallel to filing personal bankruptcy in Indiana under Chapter 13 bankruptcy law, in that both involve a debt repayment plan over time.

Now, I am happy to report, the Anderson ”racino” has successfully emerged from bankruptcy. The gambling house and racing permits have been transferred to the newly emerged company.  Centaur has sold off its holdings in Colorado and Pennsylvania under the agreement, and now owns only Indiana-based properties (the Anderson park, plus offsite betting places in Indianapolis, Fort Wayne, and Merrillville).  Whatever your views about horse tracks or gambling, it’s a positive sign whenever a company can continue to operate and generate income to employees and help the local economy. And anything that helps the local economy means jobs with income, and that makes Mark Zuckerberg very happy. 

Every lawyer for bankruptcy in Indiana knows: with Indiana being home to more than 500,000 small businesses, every company that emerges from bankruptcy will have a positive “ripple effect” on other people and other businesses. As on of the Columbus bankruptcy lawyers who is my colleague there pointed out, there will be that many fewer people needing payday loan debt help, that many fewer needing help to stop foreclosure on their homes.  All good bankruptcy attorneys in Indiana like being able to report some positive “ripples”! 

Back in May of this year, I was telling Bankruptcy in Indiana readers about yet another new program that had been created, that particular one in Marion County, to help stop foreclosures in our state. Actually, ever since the housing crisis began, I have been focusing my efforts as an Indiana bankruptcy attorney and debt consolidation lawyer on mortgage modification.

Exactly how can I, along with all the Anderson, Bloomington, Indianapolis, and Columbus bankruptcy lawyers who work in the Zuckerberg bankruptcy law offices help stop foreclosure?

• We write letters and handle phone calls to negotiate mortgage modifications with lenders.
  
• We help individuals save their homes through filing personal bankruptcy in Indiana using Chapter 13 bankruptcy law.
  
• We provide bankruptcy information in Indiana, including ways to use bankruptcy to stop foreclosure.                                                                                                                     

• Gives the bankruptcy trustee power to take action when creditors are abusing the bankruptcy process.  (These powers are both investigative – conducting audits and investigations, and punitive – imposing sanctions for misconduct by creditors.)
  
• Mandates that mortgage servicers certify (under penalty of perjury) that they are complying with the special rules for deployed and active duty military homeowners.

After 25 years as a lawyer for bankruptcy in Indiana, someone who actually helped write part of the new bankruptcy laws of Indiana, I, Mark Zuckerberg, wholeheartedly agree with reporter Elizabeth Brennon in News Junky Journal:

Banks should not attempt to profit from these hard times with improper mortgage fees and other types of fraud!

News headlines that have anything to do with bankruptcy are always a topic of discussion among the good bankruptcy attorneys in Indiana who work in the Zuckerberg bankruptcy law offices. And when the story has to do with truth-telling, the discussions can get rather heated, because all of us know that full disclosure of facts is the one thing that keeps the bankruptcy system working and fair to all the parties concerned.

In the past couple of weeks there were two particular news items that “jumped out” at us both having to do with truth in bankruptcy.  Then, just the other day I read a summary of an outline of a lecture given to bankruptcy trustees at a lawyers’ association meeting in North Carolina.  The article said that what bankruptcy Chapter 7 trustees are looking for in bankruptcy schedules (the paperwork I help clients complete when filing personal bankruptcy in Indiana) could be summed up in two words:

1. Disclosure
2. Accuracy

Basically, what that lecturer was saying is that, in bankruptcy, it’s important to tell the truth about what you own and what you owe, what money you transferred to other people and what money they may have transferred to you.  In short, tell the truth and tell it all. That's true whether it's bankruptcy Chapter 7 in Indiana, Chapter 13 bankruptcy law in Indiana, or even small business bankruptcy in Indiana wer'e talking about.

If Bankruptcy in Indiana readers will keep those concepts in mind, it will be easy for you to understand why my Bloomington, Anderson, Indianapolis, and Columbus bankruptcy lawyer colleagues spent so much time talking about the following two pieces of news:


Story #1:    Solyndra CEO touted progress to lawmakers just before bankruptcy.
“Less than two months before his solar panel company filed for bankruptcy, Solyndra CEO Brian Harrison told lawmakers on Capitol Hill that…his company had shipped record-breaking numbers of solar panels to buyers and was posed to double its revenue in 2011,” reports CaliforniaWatch.org. 
 

As a longtime debt consolidation lawyer offering bankruptcy services in Indiana, I know something is very wrong here.  One thing I’ve learned from providing Indiana bankruptcy help to tens of thousands of people is that the entire bankruptcy system rests on information, truthful information. If the court finds out that a bankruptcy filer has not fully disclosed all the financial transactions in the months leading up to the bankruptcy, it can not only deny the bankruptcy petition, but penalize the debtor for fraud! That’s precisely why such a large part of my work consists of helping clients collect, and then properly report, their information.

Story #2:   Teresa Giudice’s Hubby Joe Withdraws Bankruptcy Filing.

“Real Housewives of New Jersey hubby Joe Guidice has withdrawn his bankruptcy filing.
The New York Post is cynical, believing he decided to withdraw because he took the Fifth when questioned about assets his creditors claim he’s been hiding. “Concealing assets during a bankruptcy proceeding is a felony, since the result would be defrauding the creditors,” the Post reporter correctly explains in “Going un-broke”.

I’ll second that. 
There’s no getting around it – for the new bankruptcy laws of Indiana to work, it takes truth! 

As a longtime debt consolidation lawyer, I can tell you that the advice offered to debtors by ChristiaNet.com  is spot on: “When it comes to negotiating with creditors, debtors should bear one thing in mind: you can catch more flies with honey than vinegar!”

Creditors are more likely to work with debtors who are cooperative and demonstrate an acceptable level of respect, ChristiaNet.com  adds. In my work offering bankruptcy services in Indiana, in addition to helping clients keep their own anger in check, I’ve found that creditors are often willing to respond to letters from an Indiana bankruptcy lawyer than from a debtor.

Creditors, especially small business owners whose customers have failed to pay for goods and services may have their own anger issues, as I and all the good bankruptcy attorneys who work in the Zuckerberg bankruptcy law offices have found.

Dave Ramsey of the well-known radio advice show thinks properly-directed anger could be a good thing, because “You have to get mad at debt to get out of debt.” No one could disagree with the principles of deferring unneeded spending to reduce debt that Ramsey preaches.  Still, what we Indianapolis bankruptcy lawyers often encounter are situations where very financially responsible people have been hit hard with many bad things happening to them over time, including job loss and illness, to the point where they just cannot financially withstand the pressures by themselves.

The least productive response for debtors, I want to emphasize to clients and to Bankruptcy in Indiana readers, is getting mad and trying to “get even”.  “Getting even” with Uncle Sam by ignoring tax notices – big mistake!  Ignoring late payment letters from creditors – disaster! Even when (perhaps especially when) you feel debt collectors have violated your rights, it’s crucial for you to remain calm and to seek professional advice at the very first signs of financial downslide 

The Fair Debt Collection Practices Act requires that debt collectors treat you fairly and respectfully as well, and there are certain practices debt collectors must avoid under the law. Even though a consumer may file a lawsuit against a debt collector for violating this Act, getting angry is not a help.  For one thing, “Consumer Fraud Reporting” explains, if you get angry, you’ll forget (or forget to ask) important information.

Small business bankruptcy in Indiana and personal bankruptcy in Indiana are both designed to help you get even, not with your creditors, but with your finances!

If ever I forget how important it is for me, as a debt consolidation lawyer offering bankruptcy services in Indiana, to stay up on the state of the job market, I’m reminded the moment I step foot into the Zuckerberg bankruptcy law offices to meet with a client.  The very first thing on the mind of any debtor who lost a job, I know without even asking, is how to stop bill collectors.

In many instances, I and all the other good bankruptcy attorneys in Indiana find, the clients’ problems are related to a job loss.  That’s why I periodically use these Bankruptcy in Indiana article to bring readers up to date on companies in Indiana that are hiring or firing workers.

From Inside Indiana Business, I know that, two and a half weeks ago, more than 600 people turned out for the job fair in South Bend.  And no wonder, remarked one of my Columbus bankruptcy lawyer colleagues. According to News and Tribune.com, Indiana lost 10,200 jobs in June and July of this year, and we had the greatest amount of cuts over the past year of any state in the nation.

From our end, we see the results in the form of more clients needing payday loan debt help and help to stop foreclosure on their homes, all stemming back to lack of steady income from jobs.

Having practiced Indiana bankruptcy law for close to 25 years, I’m very proud of the fact that we’re working hard in our state to rebuild jobs.  The Indiana Plan, for example, is designed to create opportunities for minorities in the construction industry.

Meanwhile, my Bloomington bankruptcy lawyer colleagues were happy to learn that tech firm Next Wave Systems is expanding there, creating up to 60 new jobs, while the attorneys in the Zuckerberg bankruptcy law offices in Columbus celebrated the news that Stant Corporation in Connersville is adding 59 new jobs.

As an Indianapolis bankruptcy attorney, of course, I was really excited to learn of two coming expansions: Old Dominion Freight Lines, with 183 new jobs to be created, and Angie’s List, with 500 new jobs coming.

No, I remind myself and all the good bankruptcy attorneys in Indiana with whom I work – the bad times are far from over.  But knowing of all these planned job expansions goes a long way towards cheering me up.  I can never forget how important good jobs are to anyone emerging from personal bankruptcy in Indiana!

Even though I’m always reading, everything from professional law journals to the daily newspaper, any material that might have to do with debt consolidation or (especially in recent days) about student loan debt help,
I was really struck by two similar stories from two very different parts of the world.

The first story happened very close to the Zuckerberg bankruptcy law offices in Anderson, Indiana.  IndyStar.com featured the tale of a young man who recently graduated from Ball State University, who is, before even beginning his career, $30,000 in debt.  I’m hardly surprised, I must say.  Student loan debt has played an increasingly large role in my conversations with clients. 

After almost 25 years as a debt consolidation lawyer offering bankruptcy services in Indiana, I’m finding an increasing number of clients who not only need student loan debt help, but are in a situation where student loan debt is the main factor driving them to consider filing personal bankruptcy in Indiana.

The second story, called to my attention by one of my Columbus bankruptcy lawyer colleagues, quite literally comes from the other end of the earth – Korea. The Korea Joongong Daily reports that 24-year old Lee Ji-ho has already filed for personal bankruptcy, “crushed by the loans he took out to pay his college tuition.”

Like many of my clients who file individual bankruptcy in Indiana (or even small business bankruptcy in Indiana), Ji-ho was negatively affected by a combination of factors, not just one.  His father passed away and Lee Ji-ho needed money for funeral expenses and for his mother’s growing medical bills.  During the period of time from when Lee was first admitted to college, he served his compulsory military services and then worked part-time to cover expenses.  Ironically, the government refused to give him a low-interest loan, saying he had “too much income.” Lee was forced to turn to high-interest lenders for help.

(All Indianapolis bankruptcy lawyers have seen similar things happen, when debtors, in desperation, turn to payday lenders.)

Can bankruptcy in Indiana provide relief from student loan debt?  Yes, but with “caveats”… Under the new (2005) Indiana bankruptcy laws, the most likely source of relief will happen when other debt is discharged through bankruptcy, freeing up money to pay on the student loan!

H.R. 2028, the Private Student Loan Bankruptcy Fairness Act of 2011, is in committee stage as I write this.  The stated purpose of the proposed bill, according to the National Consumer Law Center is this:

Restore the Bankruptcy Fresh Start for Student Loan Borrowers!

To which I, along with all the good bankruptcy attorneys in Indiana, have just one word to say”

AMEN!

With so many students entering or going back to college this week and last, all of the Indiana bankruptcy lawyers who work in the Zuckerberg bankruptcy law offices have student loan debt problems on their minds.

One of the Columbus bankruptcy lawyers pointed out that things used to be easier. Then they got worse, and now, in 2011, there’s a glimmer of hope things might get better again.

As an Indianapolis attorney for bankruptcy, I’ve found that a question I’m asked more and more frequently is whether bankruptcy in Indiana can help with student loan debt.  Indianapolis, of course, has become a big college town, with IUPUI, the University of Indianapolis, Butler, Ivy Tech, Indiana Wesleyan, and Harrison College, and others coming on board all the time.

My answer, which I explain on a video on the Zuckerberg Law website is simply “Well…yes – and no.” Since I’ve been in practice for close to 25 years, serving as debt consolidation lawyer offering bankruptcy services in Indiana, I began well before the big changes were made to bankruptcy law in 2005.

You see, going all the way back to 1978, only government and guaranteed student loans were not eligible for discharge in bankruptcy; only private student loans could be forgiven along with other unsecured debt.

The way matters stand today, though, is that in order for a bankruptcy judge to allow your student loans to be discharged when you file personal bankruptcy in Indiana, you need to prove three things to that judge:

•  You’re living at or near the poverty level.
  
• You’ve made a “good faith” effort to repay your loans.
  
• (This one’s the most difficult to prove) It’s unlikely you’ll ever be in position to repay those loans.

As you may imagine, my function in all of this is to help you get all the financial information in order, ready to present to the bankruptcy court so that you have the best chance at getting some student loan debt help. However, as you can already tell, under the new bankruptcy laws of Indiana (the ones based on that 2005 change in U.S. bankruptcy law), that’s not very easy to accomplish.

Meanwhile, the costs of college continue to rise, meaning more and more student debt continues to accumulate. Just the other day I read an article in the Indianapolis Star reporting that tuition at Indiana’s seven public colleges has jumped more than 300% over the time I’ve been a lawyer for bankruptcy in Indiana!

Later this week, I’ll bring Bankruptcy in Indiana readers up to date on Congress’ newest proposal for bankruptcy relief for student loan borrowers…stay tuned.

One of thetop ten myths about bankruptcy in Indiana is this: You will be fired if you file bankruptcy in Indiana and never hired again.” In my 2010 book on debunking myths, I focused on one fact: It’s illegal to terminate someone based solely on a bankruptcy.
 
“Sez who?” The federal bankruptcy code is very explicit: “No private employer may terminate the employment of or discriminate with respect to employment against, an individual who is or has been a debtor under this title.”

All the good bankruptcy attorneys in Indiana who work in the Zuckerberg bankruptcy law offices have been asked the question over and over again:  Will filing personal bankruptcy in Indiana cause me to lose my job?  And, in the twenty-four years I’ve practiced as a debt consolidation lawyer and lawyer for bankruptcy in Indianapolis, clients have expressed this fear to me again and again.

One point I need to emphasize when providing bankruptcy information in Indiana is that ours is an “employment at will” state. What that means is that employers do not have to have a reason for letting employees go.  On the other hand, as one of the Columbus bankruptcy lawyers who is my associate keeps reminding clients, no employer is allowed to unfairly discriminate against particular employees by reason of their age, gender, race, or – their bankruptcy!

Remember, I say to clients wrestling with a decision of whether to file individual bankruptcy in Indiana: your employer will not be notified automatically that you have filed bankruptcy.  If you keep your personal life details to yourself in your workplace, in all likelihood, your employer will not know.  On the other hand, should you choose not to file, your employer may find out when your wages or garnished. 

The law that specifically applies to private employers is Section 525(b), preventing discrimination against employees because of bankruptcy.  In the real world, it can be difficult to prove that a firing or layoff happened because of a bankruptcy.

It’s a difficult situation.  Making a successful comeback after bankruptcy takes income from a job.  People struggling financially need to keep their jobs.  Employers need good work performance and experience, and would often rather hang on to good employers than start over with new ones. The best secret of job protection may consist simply of doing the best job!

Bankruptcy is meant to help solve problems, not create them.

It’s indisputable - Facebook founder Mark Zuckerberg is both more famous and higher paid than I, Mark  Zuckerberg the debt consolidation lawyer offering bankruptcy services in Indiana.

The other day, though, a CNN.com article gave me the somewhat mean-spirited satisfaction of knowing that I am better than he at giving presentations.

As I sometimes mention in these Bankruptcy in Indiana articles, I lecture all over the country on bankruptcy law. Everyone seems to think my talks are clear, easy to understand, and helpful to audience members (who might be anyone from Columbus bankruptcy lawyers to bankruptcy judges from East Coast states, to U.S. Senate committee members).

The other Mark Zuckerberg, by contrast, didn’t get very good reviews on his recent presentation at the Facebook conference in Palo Alto, California.  Compared unfavorably by CNN to Apple Computer’s Steve Jobs, my namesake failed to excite fans about Facebook’s new video-conferencing feature.

Like my topic, the new bankruptcy laws of Indiana, the new Facebook technology is filled with complexities.  I need to explain the difference between bankruptcy chapter 7 in Indiana and filing using Chapter 13 bankruptcy law in Indiana. The problem was that Mark Zuckerberg of Facebook used a lot of technical language and failed to communicate with the audience in terms they could understand.

What I’ve learned from almost 25 years of experience as a lawyer for bankruptcy in Indianapolis is that the better job I do of communicating clearly to my clients, the more able they will be to make the decisions they need to make to remedy their financial troubles.  All the good bankruptcy attorneys in Indiana who work in the Zuckerberg bankruptcy law offices know this as well:  everything depends on clearly communicating the crucial points about personal bankruptcy in Indiana to our clients.

“Steve Jobs builds his presentation around our innermost desires.  Zuckerberg builds his around normalized logarithmic graphics,” complained one CNN reviewer.

Our Indiana bankruptcy clients have urgent pressing matters to deal with.  They may need payday debt help, help to stop foreclosure on their home, help getting a car back that’s been repossessed.  They need Indiana bankruptcy information, and they need it NOW. There’s no time for graphs or complex explanations – my clients need plain talk when we're providing bankruptcy services in Indiana.

So, while I will probably never attain the wealth or the fame of the other Mark Zuckerberg, at least I can claim - for the moment, anyway - to be the better presenter!

Over the years, I learned, “life can be brutal, but bankruptcy need not be.” This week, I’ve devoted my Bankruptcy in Indiana articles to showing why that statement is true.

I think that all the Anderson, Bloomington, Indianapolis, and Columbus bankruptcy lawyers who work in the Zuckerberg bankruptcy law offices agree that our clients sense ‘brutality” in life mostly because of the feeling they have that there’s no one listening, no one answering their concerns, that they’re filling out computerized form while their lives are falling apart.  The only people talking to them directly are the ones they’d rather not hear from – bill collectors who are harassing them at home and at work!

That’s one of the reasons I think the bankruptcy process itself is designed to counteract that impersonality.  I always emphasize that bankruptcy is a process, not an event.  And part of that process is what’s called the creditors’ meeting. 

This is an actual meeting that takes place within a month and a half from the time a bankruptcy is filed.  The meeting is typically presided over by a bankruptcy trustee appointed by the court, and it might be in an office or a private room at a federal courthouse.  As a debt consolidation lawyer offering bankruptcy services in Indiana, I am present at this meeting, along with my clients.  The purpose of the meeting is to get all the pertinent information “out on the table” – the creditors are invited to come (usually they do not choose to attend). 

The way I see things, this creditors’ meeting is the kindest, least brutal process for all concerned. It’s personal, not just a computer page. It’s low key, and it’s information-gathering. You’re asked why you’re filing personal bankruptcy in Indiana (and whether you're filing under Chapter 13 bankruptcy law in Indiana or filing Chapter 7 bankruptcy Indiana, and sometimes asked to explain something on one of the bankruptcy forms you’ve filled out (with your attorney’s help). You’ll be under oath to tell the truth, but there’s no “cross-examination” or anything like TV courtroom dramas – as I said, the purpose is to deal with the real situation in the most helpful manner possible.

As a final sentiment for this week’s articles on why bankruptcy in Indiana is the cure, not the cause of whatever brutality people suffer in their financial lives, I think it’s important to talk abou tforgiveness. In bankruptcy, the word “forgiveness” has a technical meaning, because in bankruptcy a debt need never be paid once it’s been forgiven.  In the final analysis, though, it’s the clients who need to forgive.  In order for individuals to successful emerge from bankruptcy, they must move on in their lives. 

If they need student loan debt help or help to stop foreclosure, they need to "forgive" the government. People can never really make a fresh financial start until they’ve forgiven the creditors, their spouses, their children, their business partners, their employers, on and on.  Mostly they need to forgive themselves!
 

Four years ago, as I prepared to launch this Bankruptcy in Indiana article series, I started out by explaining why.  I explained that my line of work, a debt consolidation lawyer offering Indiana bankruptcy help, “I’ve learned that life can be brutal, but bankruptcy need not be.”

I explained that I’m a guy who tries to keep up with technology but that I value old-fashioned client service.  I wanted to debunk all the “factoids” that are circulating about bankruptcy.  Who better to do that, I reasoned, but a group of attorneys with years and years of experience and tens of thousands of clients already helped through individual bankruptcy in Indiana?

I was reminiscing about all this the other day in a meeting with all the good bankruptcy attorneys in Indiana who work in the Zuckerberg bankruptcy law offices.  I decided after that talk to devote my articles this week to a sort of review of specific ways in which bankruptcy is not, and need not be, brutal, using the actual experiences each of our Anderson bankruptcy lawyers, Columbus bankruptcy lawyers, and Bloomington and Indianapolis lawyers for bankruptcy.

Obviously, losing one’s home is one of the most frightening prospects anyone can face. When I first began writing my articles, MSNBC had just devoted an entire article of their own comparing bankruptcy and foreclosure.  Their advice: “Look at all your options.  Try working out different solutions with your lender.  Get the help of a professional.  MSNBC quoted Ray Hooper of the Consumer Credit Counseling Service of Greater Dallas as saying “Lenders are more likely to go along with your plan if a competent third party is there to help smooth the process.”

It’s for this precise reason that I and all the lawyers for bankruptcy in Indiana who work with me decided we would offer mortgage modification help to our clients. What Hooper’s remark confirmed is something we have always believed, namely that we are here to be the competent third party in helping our clients wrestle with financial issues.  And, since so many of our clients are women, often single mothers, either women filing bankruptcy or women seeking Indiana bankruptcy help or help to stop foreclosure, the fear they are experiencing over possible losing their home is often even greater than for other clients.           

Just having a professional who understands the legal options, who listens to all their concerns, finding out what assets are most important to keep and which can be let go, which letters and notices must be answered immediately and which not, we’ve found, helps heal clients who’ve suffered the brutality of harassing calls from bill collectors or the scare of wage garnishment. And, as Hooper pointed out, lenders do take applications much more seriously when a legal professional is by a borrower’s side.

As a longtime consumer debt specialist, I’ve dedicated my work to DE-mystifying and UN-brutalizing!

There always seem to be two sides to a story, don’t there? In offering Indiana bankruptcy information, earlier this week I brought my Bankruptcy in Indiana readers up to date on quite a number of good new items about jobs that are coming to our state.  And jobs, (in particular the regular income generated from those jobs), are not only the secret for avoiding bankruptcy, they are the secret of successful emerging from personal bankruptcy in Indiana.

Only after reading an article in the Indianapolis Business Journal called “Why job creation falters in Indiana”, did I realize that all the job announcements I had mentioned in my article were from large employers. The IBJ reported Susan Clark Muntean’s reasoning about what’s going on with jobs in Indiana right now. Muntean, a Ball State management professor, points out that the media tends to dwell on expansions by big companies, forgetting that entrepreneurs are the ones responsible for most job creation.  Muntean believes our state should provide more help to small businesses, instead of providing big grants to lure big business here to the state.

Now, as a longtime small business bankruptcy attorney in Indiana, I am very sensitive to the fact that small business owners have a lot at risk.  And, with Indiana being home to more than half a million small businesses, it’s natural that, during the economic downturn, there has been a big increase in the number of Indiana small business bankruptcies filed. Small business faces all the same challenges that big businesses face, but are even more vulnerable to risk of failure.  That means that I am in general agreement that small business in Indiana needs as much, if not more, government attention and help as big business.  

On the other hand, I realized as I discussed the IBJ article with all the other good bankruptcy attorneys in Indiana who work in the Zuckerberg bankruptcy law offices, our focus needs to be on getting regular income into the hands of our clients. It could very well be the case, as IBJ seems to imply, that the press reports on the big companies, but that the small companies are doing the bulk of the hiring. Whoever’s doing the hiring right now, as a lawyer for bankruptcy in Indiana, I know this: 

Those who’ve filed bankruptcy Chapter 7 in Indiana need income now in order to keep the bills paid.  Those who’ve filed individual bankruptcy under Chapter 13 bankruptcy law in Indiana need to make regular debt repayments.  Every debtor needs to help stop foreclosure. 

As one of the Columbus bankruptcy lawyers who works with me said emphatically, that means they need jobs. Now.