Indianapolis Bankruptcy Lawyers

There’s a law against post-bankruptcy discharge debt collections, but some creditors still don’t get the point. After 25 years helping tens of thousands of debtors file personal bankruptcy in Indiana, I’m finding more and more that it’s not always over when it’s over.

The way it’s supposed to work is that, after you’ve emerged from individual bankruptcy in Indiana and some or even all of your debts have been discharged, creditors are required to report zero debt.  That allows your credit report to recover, and allows you to make that fresh financial start that Indiana bankruptcy is all about.

The bankruptcy discharge “recipe” calls for:

• You’re released from liability on any debt for which you received a discharge.
  
• Creditors are barred by legal order from making any collection efforts.
  
• Creditors are not allowed to harass or threaten you.
  
• Creditors can’t sell your already discharged debt to another collection agency.
  
• Creditors can’t give a negative report about you to a credit bureau.

OK, as all of us attorneys in the Zuckerberg bankruptcy law offices are often asked, so what if that’s not what happens? What are we supposed to do next, debtors ask?

 First, contact those creditors in writing, informing them that the debt was discharged in your bankruptcy proceedings.  If that doesn’t work, call your lawyer for bankruptcy in Indiana! This is what you should do whether or not you used the help of an Indiana bankruptcy lawyer to file in the first case, because, now that your creditor has broken the law, it’s time to get serious.

My colleagues the Columbus bankruptcy lawyers have been following creditor harassment cases around the country, reporting that courts are taking a very strong stand against creditors who break the rules.  In fact, it’s not unusual, they report, for courts to award  damages to debtors for lost wages, attorneys’ fees, and even “emotional harm”.

The new bankruptcy laws of Indiana (including both bankruptcy Chapter 7 and Chapter 13 bankruptcy law) are designed to bring your old financial life to an end and offer you a chance to start over on a better track.  When that doesn’t happen, the Fair Debt Collection Practices Act gives you legal rights to sue debt collectors who threaten, intimidate, or harass you.

I help debtors – I help stop foreclosure, offer payday loan debt help and even student loan debt help, all under the bankruptcy laws of Indiana.  But, when those very laws are being broken by creditors that threaten to undo all the good work I’ve done, I’m ready to take up arms!

I’m always happy to share glimpses of good news with my Bankruptcy in Indiana readers.  That goes double when it comes to news about jobs. Believe me, as a debt consolidation lawyer offering Indiana bankruptcy help, I’ve gotten real up close and personal with the effects of the recession.  Plain and simple, successfully emerging from individual bankruptcy in Indiana (whether we’re talking about bankruptcy Chapter 7 in Indiana or about people filing under Chapter 13 bankruptcy law) is all about having income from jobs.

• Sunshine Manufacturing, producer of tanning products, is relocating from Arizona to Indianapolis (my Indianapolis bankruptcy lawyer colleagues are thrilled about this), moving into a plan that will employ 220 full-time workers.
  
• Alcoa will be greatly expanding its aluminum-lithium alloy plant near Lafayette, Indiana.

But, you Bankruptcy in Indiana readers might ask, does that mean our unemployment rate has fallen?  Well…actually, no, not really yet. We’ve still got a long, long way to go to get everyone working who wants to and needs to work.

Whatever the number, though, the new jobs mean that at least some debtors will be able keep up their three to five year debt repayment plans under Chapter 13 bankruptcy law in Indiana.  At least some debtors who’ve filed bankruptcy Chapter 7 in Indiana will be able to regularly pay their bills and set aside an emergency fund.  For some debtors, their new jobs will mean I can help stop foreclosure on their homes.  For some debtors, it will mean that, with debt discharged through bankruptcy, they’ll have enough income, and that will let me offer student loan debt help. 

For this bankruptcy lawyer in Indiana, it’s been a long, long haul watching good workers lose jobs.  There may not be enough new jobs, but let me tell you, new jobs offer new hope for those emerging from bankruptcy in Indiana!  

Getting back to good is what it’s all about in my work as an Indianapolis bankruptcy attorney, and really what all the new bankruptcy laws in Indiana are designed to help you do. 

All my colleagues in the Zuckerberg bankruptcy law offices talk periodically with financial planners and loan officers at banks and mortgage companies, and I also read financial planning journals. The whole idea is to bring the most up-to-date approach to our work, which is offering  Indiana bankruptcy help.

Most people we talk to have more than one credit card, with some having quite a number of them. There seem to be two different schools of thought in terms of paying those off:

1. One financial adviser shared with my Columbus bankruptcy lawyer colleague that he tells clients to begin by paying off the card debts that carry the highest interest rates.
   
2. Many magazine advice columns, on the other hand, seem to lean towards paying off the cards with the smallest debts first (in order to gain a sense of accomplishment)m then turning your attention to larger debts.

After twenty five years of helping debtors prepare for filing personal bankruptcy in Indiana, and then helping them emerge from bankruptcy to make a fresh financial start, I have some important items to add to this list of ways to handle debt:

• It’s very, very important not to have any one credit card debt that is above 50% of the credit limit for that card. So, in choosing where to start, debtors must keep that over-arching rule in mind.
  
• As Steve Bucci points out in the book Credit Repair Kit for Dummies, there are creditors who don’t report to the credit bureaus at all, which means that payments made on those debts won’t help in terms of positive points on your credit score. Bucci lists credit unions, utilities, tradespeople, landlords, and insurance companies, who often don’t want to pay a fee to submit information to the credit bureaus.

As someone providing bankruptcy services in Indiana, I certainly don’t mean to imply these debts shouldn’t be paid, or that there won’t be negative consequences if you don’t (turning off utilities, evictions, harassment, etc.).  It simply means that when you’re creating a plan for getting out of debt, you want to focus on generating positive items to appear on the credit report.

• Rebuilding a credit score (either before or after filing personal bankruptcy in Indiana) is about showing you can be responsible in handling credit and that you’re making payments on time. Smaller purchases (hence more manageable repayments) can help you establish a positive repayment history quicker.

Having said all that, I suspect that if you’re reading this page, it may be that your credit standing is NOT in good shape and that your financial life has taken a downward path. Counseling on how to manage your budget may not be of little help now, because your bills are mounting every day.

Any experienced bankruptcy attorney in Indiana would be able to provide budgeting advice, but what you need to know is that an attorney is the ONLY person who can offer the legal advice you need to get you back to good!

You’ve all heard the expression “Less is more”, often in connection with fashion accessories or home décor.  Well, the means test for personal bankruptcy in Indiana is one example where less is a lot better than more!

The first step for moving forward with bankruptcy Chapter 7 in Indiana is meeting the “means test”.  “If you have too many means,” as Steve Bucci explains in Credit Repair Kit for Dummies, “you can’t declare Chapter 7.”

As a longtime debt consolidation lawyer offering Indiana bankruptcy help, one of the very first things we do with visitors to the Zuckerberg bankruptcy law offices is measure income, starting with look at the latest tax returns.

Next, as every lawyer for bankruptcy in Indiana knows, family income must be compared to the median income for families that size here in Indiana.

As the third step in the means test, we determine if you have “excess monthly income” (money coming in over and above allowable expenses as specified by the IRS).  If that excess is more than $166.66 per month, it’s too high for you to qualify for Chapter 7 bankruptcy. Why $166.66? Because that’s how much it would take to pay off $10,000 of debt over a five-year period of time.  Again, less is better, if what you want to do is qualify for bankruptcy Chapter 7.

Now, if you “passed” that third part of the means test (your excess income was NOT as high as $166.66 per month), the fourth step measures whether you have at least $100 per month excess income, and then whether that $6,000 ($100 a month for five years) would pay off 25% or more of your debt.  Once again, less is more.  Only if you cannot eliminate 25% of your debt by paying $100 per month will you qualify to file Chapter 7 bankruptcy.

If it doesn’t look as if you can quite pass the means test, I and my colleagues the Anderson, Bloomington, Indianapolis, and Columbus bankruptcy lawyers might advise you to try one other tactic that is allowed under the new bankruptcy laws of Indiana – giving charity. The law allows you to donate up to 15% of your income to your place of worship and to count that as a regular expense.  Sometimes that pushes the income down enough to satisfy the means test.

Whoever coined the phrase “Less is more” must have had the Indiana bankruptcy means test in mind!

What’s ahead when it comes to bankruptcy in Indiana?   In fact, what’s going on around our country?  (It’s easy to understand why I, as a debt consolidation lawyer offering Indiana bankruptcy help would be interested in statistics about bankruptcy, but why would you, readers of these Bankruptcy in Indiana articles, care about anybody else’s bankruptcy but your own?)

Well, for a number of reasons.  Remember the “ripple effect” I’m always discussing, the one where a company has financial problems and lays off employees?  Those employees then have no money to buy stuff, so the small business owners in the area are hurt.  Problems – and solutions to problems – are contagious.  Knowing what’s going on around you keeps you prepared to deal with whatever life dishes up. That’s why I think it’s so important for me, in these Bankruptcy in Indiana articles, to stay on top of news from around the globe and to encourage all my colleagues the Bloomington, Anderson, Indianapolis, and Columbus bankruptcy lawyers to read everything they can get their hands on and then share information.

Take the item from the Milwaukee Business Journal, for example, reporting that eastern Wisconsin bankruptcy filings declined by 7% in 2011, while at the same time quoting a local attorney who believes filing personal bankruptcy will increase in 2012, because people remain underemployed and because many homeowners will not be able to arrange mortgage modifications on their homes.

In our own four Zuckerberg bankruptcy law offices, we work hard to help people negotiate mortgage modifications, but the fact remains that Chapter 13 bankruptcy law in Indiana has proven to be a much more effective tool to help stop foreclosure.

A second article out of Washington State also notes that bankruptcy filings appear to have slowed down a little, but that a future jump is expected as bank try to recoup their losses from some of the foreclosures.

The statistics tell us there were 22754 cases filed in Southern District of Indiana in 2011, compared with 27394 the prior year.  But, as someone who’s helped tens of thousands of Indiana debtors make a fresh financial start by filing individual bankruptcy in Indiana, I believe we’re not nearly out of the woods yet.

An Indiana University study says that 46 million Americans are living below the poverty line, and that those numbers will continue to rise.  Although the recession is officially over, the scarcity of well-paying jobs will have the effect of increasing poverty levels.

Predictions won’t help you individually, but what I’m hoping is that knowing how widespread the problems are will help you realize that time is on your side only if you, early on, seek help in exploring different options. No, you may not be ready to actually file personal bankruptcy in Indiana or small business bankruptcy in Indiana, but, are you ready to get your own personal statistics (your “ducks”) in a row, ready to handle whatever the new year brings?

When it comes to bankruptcy in Indiana, I’ve learned after 25 years offering Indiana bankruptcy help, it’s not a matter of “poor– it’s a matter of “debt”.

As a debt consolidation lawyer, I often find my advice being sought not by shabbily dressed clients driving rattletrap cars, but by people who are used to extremely luxurious lifestyles. Some combination of job loss, divorce, medical emergencies, and the drop in real estate values forced them to face up to their spiraling debt situation and to seek Indiana bankruptcy help.

Usually, visitors to the Zuckerberg law offices come in feeling they’re very much alone.  Actually, though, that’s far from the case. That’s why, in these Bankruptcy in Indiana articles, I find it useful to highlight stories of very famous sports figures, movie stars, and political leaders who filed personal bankruptcy not because they were “poor”, but because their debts got the better of them.

One of the Columbus bankruptcy lawyers who works in the Zuckerberg bankruptcy law offices brought in an interesting story about something that happened only last month. A tycoon once called the richest man in Ireland was declared bankrupt by the High Court in Dublin. Sean Quinn, whose real estate fortune was valued at $6 billion just a few years ago, now has debts of approximately $3 billion.

This Sean Quinn saga makes for an interesting tidbit, to be sure, but is the story really valuable to “regular folks” in Indiana who need me to help stop foreclosure on their homes or who need student loan debt help? Here’s why I'm including this article as part of providing bankruptcy information in Indiana:

• The new bankruptcy laws of Indiana are designed to offer a chance for a fresh financial start, and that means every honest debtor regardless of the number of zeros after the numbers.

• Sean Quinn became a billionaire by taking risks in business. As every business person – and every Indiana small business bankruptcy lawyer – knows, not always do risks pay off as hoped.

There’s little pleasure in Sean Quinn’s bankruptcy,” remarks irishcentral.com, explaining that Quinn’s “downfall was as unexpected as it was dramatic.”  As all good bankruptcy attorneys in Indiana would agree, though, there may be no pleasure in ANY bankruptcy, but what there is, is RELIEF!

Sometimes even we bankruptcy attorneys in Indiana need reminding – in business, enterprise isn’t always given its just reward. My colleagues in the Zuckerberg bankruptcy law offices were passing around an article the other day.  Mental Floss magazine was telling the story of Charles Goodyear, inventor of vulcanized rubber.

In these Bankruptcy in Indiana articles I’ve sometimes listed movie stars and famous sports figures who’ve filed bankruptcy.  While I and my colleagues the Anderson, Bloomington, Indianapolis, and Columbus bankruptcy lawyers practice only in central and southern Indiana, and “only” for the past 25 years, I still thought the story of Charles Goodyear would help readers realize that sometimes businesses fail because of small, understandable mistakes, and because of forces beyond business owners’ control.

The Goodyear story goes back to the 1830’s, when there was great consumer demand for rubberized goods.  The problem was that, as the weather changed, the rubber would either become rock hard in the cold or melt into a sticky mess in the heat.  Charles Goodyear discovered a way to combine sulfur with the rubber to stabilize it.  But because he failed to file a patent quickly enough, he did not benefit financially from his discovery and ended up in debt.

What can we learn from this today?  Small business bankruptcy in Indiana has understandably increased. After all, Indiana is home to well over half a million small businesses. And the one question Indiana lawyers for bankruptcy are asked again and again is this:

Can I file business bankruptcy in Indiana without filing personal bankruptcy as well?

The answer is probably “no”.  Why?

• 90% of small business loans are personally guaranteed by the owners.
  
• In most cases owners have put personal funds into their business and also withdrawn money from the business for personal use.
  
• Often, business owners have related money problems made worse by the business issues, such as needing student loan debt help.

Was that a “mistake”?  No, it was just what the owner needed to do at the time.  Charles Goodyear made a “mistake” in failing to protect his invention right away.  But sometimes, even patents that were filed right away are infringed, with small business owners lacking the funds for a legal battle.

After 25 years offering Indiana bankruptcy help, I know that small business owners do the best they can.  Often, though, that’s not enough.  At the Zuckerberg bankruptcy law offices, our purpose is to help even when life just hasn’t been fair!

Not everyone qualifies to file under chapter 13 bankruptcy law in Indiana. But, as BankruptcyAction.com points out, there are several reasons why people choose Chapter 13 over Chapter 7 when given the choice.  As for me, a debt consolidation lawyer offering Indiana bankruptcy help, whenever it’s important for a client to save a home and help stop foreclosure, I choose Chapter 13 bankruptcy as the perfect tool for the job.

Here are just a few of the situations when you as a debtor might opt for Chapter 13:

• You think it’s the “right thing to do”, to make every attempt to pay your own debts – you just need more time.
  
• You’re behind on your mortgage or car payments and need time to make up the missed payments without late fees and interest making that ever more impossible. This is one piece of bankruptcy information in Indiana I believe is so important to convey to consumers, and that’s why I keep coming back to this idea in these Bankruptcy in Indiana articles.
  
• You have valuable pieces of property (could be a home or it could be other property that is not exempt under bankruptcy Chapter 7 in Indiana).
  
• You filed a Chapter 7 within the past eight years.
  
• You have a big federal tax debt.

All of the Columbus bankruptcy lawyers who are my colleagues, along with the Indiana bankruptcy attorneys who work in the Zuckerberg bankruptcy law offices in Indianapolis, Bloomington, and Anderson, Indiana use Chapter 13 to accomplish things that cannot be accomplished under bankruptcy Chapter 7 in Indiana.  Chapter 13 is sometimes referred to as the “bill consolidation: version of bankruptcy or the “wage earner’s bankruptcy plan”.  Under the new bankruptcy laws of Indiana, one of the main things that Chapter 13 accomplishes is saving homes. 

How does Chapter 13 help stop foreclosure? When you’re behind on house payments, sooner or later (unfortunately it’s usually sooner), your lender or mortgagor is going to take legal action to collect what you owe, or threaten to evict you from the house and take the property back.  If you can file individual bankruptcy in Indiana using Chapter 13 bankruptcy law, and if you do it prior to the sheriff’s sale of your home, the bankruptcy court can cancel your mortgage debt (this is particularly true of a second mortgage or home equity loan) or give you the opportunity to stop the foreclosure and make the missed back payments over time.

Can you see why, over my 25 years practicing Indiana bankruptcy law, I consider myself as part of the Chapter 13 home rescue squad?

Over the 25 years I’ve served as a longtime debt consolidation lawyer offering bankruptcy services in Indiana, I’ve seen many changes in the law, many political figures’ rise and fall, and debates going on in national, state, and local politics. It’s been only in recent months, however, that so much debate has centered around military benefits for U.S. veterans


Every good lawyer for bankruptcy in Indiana has been faced with the realization that serving our country can lead to a fight for veterans’ financial life once they’re back home. Finding well-paid employment and good housing, plus managing debt repayments are all issues for many veterans and their families.

The big debate raging in Congress for the past half year has been about cutting the deficit. Now, even though I’ve actually appeared before Senate subcommittees to discuss bankruptcy law, my intention in this Bankruptcy in Indiana article is not to get involved in politics, but to make readers aware of the very-much-in-the-news debate about military benefits.

As my colleagues the Anderson, Bloomington, Indianapolis, and Columbus bankruptcy lawyers all know, there’s been a big increase in the last few years in military foreclosures. This is happening despite many special protections that are in place for active service members and for veterans, including lowering the interest rates on their mortgages and reducing their monthly payment amounts. Our bankruptcy laws make special allowances for veterans, allowing them to have higher incomes and still qualify to file Chapter 7 bankruptcy in Indiana, for example.

The headline issue we’re reading about these days is not about those special benefits, but about thelifetime health care, called TRICARE, now provided to veterans. Due to the budget crunch, there is now talk of having veterans pay more for these health benefits.

Where do I weigh in on all of this? For all these years of practicing Indiana bankruptcy law, I’ve made it a mission to prevent service members from being evicted from their homes, and provide payday loan debt help (that trap is particularly prevalent among service members). I continue to try to guard the financial interests of Indiana Guardsmen and their families.

At the four Zuckerberg bankruptcy law offices, we continue to fight the good fight on behalf of veterans, grateful for the safety net of bankruptcy in Indiana!

Even with thousands of copies of my book “Top Ten Myths About Bankruptcy in Indiana”  circulating around the state, when people have financial troubles, they don’t always think straight, I realize.

So when one of the Anderson bankruptcy lawyers who works in the Zuckerberg bankruptcy law offices there emailed me a newsletter from Palm Harbor, Florida, warning against common mistakes people making before filing bankruptcy, I decided my Bankruptcy in Indiana readers needed a review “lesson”.


Palm Harbor Patch Bankruptcy “No-No” #1: Transferring property to family and friends, expecting to get it back when you’re done with the personal bankruptcy in Indiana. Fact: if you transfer property to anyone, the bankruptcy trustee can go after that person.  What’s more, as all good lawyers for bankruptcy in Indiana know, the “look-back” can go back to the four years leading up to the bankruptcy.

Palm Harbor Patch Bankruptcy “No-No” #2:  Max-ing out all your credit cards right before bankruptcy. If the bankruptcy court realizes you’ve borrowed money with no intention or ability to repay that money, it may hold you responsible for those debts even after the bankruptcy is over!  That principal holds true for bankruptcy Chapter 7 in Indiana, as well as for Chapter 13 bankruptcy law.

Palm Harbor Patch Bankruptcy “No-No” #3: Cashing in your IRA or 401K to pay bills, hoping to avoid filing bankruptcy.  “Your IRA and 401(k) are among one of your most protected assets in a bankruptcy proceeding. In almost all circumstances,” explains Palm Harbor Patch. Your 401(k) is exempt from the bankruptcy estate — you get to keep it after bankruptcy. Your basic IRA is exempt up to $1 million.

There are many common misunderstanding and mistakes, but those are three of the more common no-no’s.  The most important thing is to ask for help – help to stop foreclosure, student loan debt help, payday loan debt help, or help figuring out which type of individual bankruptcy in Indiana best fits your situation. 

At the Zuckerberg bankruptcy law offices, consultations cost nothing.  Mistakes?  Now THOSE can be very expensive!

Student loans are making headlines again, and, as a debt consolidation lawyer who’s been offering Indiana bankruptcy help for almost 25 years, I know that’s not good.

“The amount of student loans taken out crossed the $100 billion mark for the first time, and total loans outstanding will exceed $1 trillion for the first time this year” (meaning 2011), reported USAToday.

To the bankruptcy attorneys in Indiana who work in the Zuckerberg bankruptcy law offices, these scary statistics mean that of the hundreds of Indiana residents who file personal bankruptcy in Indiana in the coming year, an unprecedented number will need student loan debt help.   

The way reporter Alex Pareene puts it, “This is unprecedentedly awful for an entire generation of young people just entering adulthood.” Why so awful?  Pareene predicts that graduates will need to use their earnings towards debt repayment rather than towards buying homes and building up savings.

Under the new bankruptcy laws of Indiana (and under the U.S. bankruptcy code), the only circumstance under which a student loan can be “discharged” is when the loan imposes “undue hardship”.  The courts interpret this to mean that it would literally be impossible for the debtor to repay the student loans and still maintain even a minimal standard of living.  Unlike the case with other kinds of unsecured loans, filing personal bankruptcy in Indiana will typically not provide direct relief to student loan debtors. That rule holds true for both private student loans and government-backed loans.

One question that the bankruptcy lawyers in Columbus, in Bloomington, in Anderson, and in Indianapolis are often asked is whether it’s hopeless for student loan debtors to even file individual bankruptcy in Indiana. The answer is a resounding “No!” 

• The collectors of student loans who are harassing you for overdue payments will be put “on hold” for up to five years. (That won’t make either the debt or the interest accruing on the debt go away, but it will give you some breathing room.)
  
• Some of your other debts could be discharged through bankruptcy, freeing up money for repayment of student loans.

As a longtime lawyer for bankruptcy in Indiana, I stay involved in efforts to change bankruptcy laws of Indiana to allow for forgiveness of student loans. While, so far, these efforts have been unsuccessful, my colleagues and I have been very successful in using bankruptcy to help people gain overall relief from debt, so that they can fulfill their student loan obligations over time.

By way of using these Bankruptcy in Indiana articles to provide insights into the way the bankruptcy process works, I like to discuss real-life examples from bankruptcy cases in other states. One of my Columbus bankruptcy lawyer colleagues found this Illinois story in Consumer Bankruptcy News:

The debtors, Mr. and Mrs. S., had filed under Chapter 13 bankruptcy law. (Apparently they had wanted to help stop foreclosure on their home.)  Some of their unsecured debt had been discharged (forgiven) by the court, and now the couple had begun their three year debt repayment plan, making monthly payments of $200 to their creditors through the bankruptcy court.  As a 25-year veteran debt consolidation lawyer practicing Indiana bankruptcy law, I’ve helped thousands of people through this exact process. In this case, however, something fairly unusual happened – Mrs. S received an inheritance.

Now, at all four of the Zuckerberg bankruptcy law offices, we deal with Indiana debtors only.  It’s obvious to me, however, that Mr. & Mrs. S. got good advice from their bankruptcy attorney, because they promptly reported the inheritance to the bankruptcy court.

The interesting thing about this case is that the inheritance was actually large enough to repay all the unsecured creditors in full. Normally, in a case of individual bankruptcy in Indiana, the court would have demanded that the money go to pay creditors. But not all of those unsecured creditors had filed claims with the bankruptcy court!  Once the deadline had passed for filing claims, the trustee asked the court whether he could file claims for them. 

Here’s the part I want to share with my readers: The court ruled that the trustee could not file on behalf of the creditors!  The couple had done everything they were supposed to do – they had made payments on time. They had reported the inheritance. They had put the money into their debt repayment plan.  In short, this couple had done everything that any good Indianapolis bankruptcy lawyer would have advised.

But ALL the players needed to do their part. The creditors who had not filed claims did not get any more money than was arranged for in the original Chapter 13 debt repayment plan.  “The debtors are entitled to finality,” ruled the court.

Indiana bankruptcy Lesson #1 – Because the debtors worked under the guidance of their lawyer for bankruptcy and followed his advice, the dispute ended in their favor (they were able to keep the remaining inheritance).

Indiana bankruptcy Lesson #2 – In bankruptcy (in Indiana or elsewhere), debts are measured as of the day of filing.  On the other hand, any change in your financial circumstances must be reported to the court.

As every good bankruptcy attorney in Indiana knows – the system is meant to treat all parties fairly.  But the parties have to do their part fairly, as well!

Filing personal bankruptcy in Indiana is probably on no one’s Favorite Things To Do list, but, under certain circumstances, it might actually make sense to do it twice!

With four Zuckerberg bankruptcy law offices serving 60 different counties, my colleagues the Anderson, Indianapolis, Bloomington, and Columbus bankruptcy lawyers and I encounter all sorts of situations.  So, when does it make sense to file one type of individual bankruptcy in Indiana and then, not too long afterwards, to file another?

To answer that question, we first need to look at the one main purpose for each bankruptcy.  There may be more than one benefit to be gained under the new bankruptcy laws of Indiana, but most debtors who file bankruptcy Chapter 7 do it to get debt ”discharged” or forgiven by the court.

However, debtors could file bankruptcy just for the “stay of it”.  One immediate effect of filing bankruptcy is the Automatic Stay, which halts all legal and debt collection actions, buying time for debtors to catch their breath, to plan and strategize.  In fact, after 25 years as a debt consolidation lawyer offering Indiana bankruptcy help, I can tell you that all my clients report that the relief they feel when the harassing phone calls and letters stop is enormous.

When I talk about two bankruptcy filings by the same debtor, that usually means bankruptcy Chapter 7 first, then, after that’s concluded, filing under Chapter 13 bankruptcy law in Indiana.

What’s the point of the “double”? Debts over certain limits can disqualify a person for Chapter 13 bankruptcy.  Yet only Chapter 13 can help stop foreclosure.

Here’s where having an experienced attorney on your side can make a big difference, fitting the tactic to the situation.  Through Chapter 7, unsecured debts can be discharged, bringing debt levels down enough to qualify for a Chapter 13.  That, in turn, could allow for a longer-term solution to the mortgage problem. 

This is where the TV announcer would warn viewers “not to try this at home”. It takes very detailed knowledge of both the debtor’s situation and of Indiana bankruptcy law to suit the two-bankruptcy strategy to the individual situation.

Given the right circumstances, two can in fact be better than one!

You may or may not have ever attended a 341 Creditors’ Meeting, but I’ve got you beat.  In my 25 years as a debt consolidation lawyer offering bankruptcy services in Indiana, I’ve attended tens of thousands of them.

Any meeting held at a court house may seem scary to a first timer.  After all, the meeting involves taking an oath to tell the truth before answering questions about your personal finances. Even the name is intimidating, because the creditors in question are people and companies to whom you owe money!

Since one aspect of my work is preparing clients for these meetings as part of offering Indiana bankruptcy help, I can tell you that the process is surprisingly fast and smooth.  Many 341 meetings are over in less than half an hour and (most surprising of all to Indiana bankruptcy filers), in most cases the creditors themselves don’t bother showing up!

All the Indiana bankruptcy attorneys who work in the Zuckerberg bankruptcy law offices have had the same experience – showing up for a creditors’ meeting and finding no creditors there!  So, who IS there? Well the meeting is run by a court-approved bankruptcy trustee (typically a local attorney employed by the court).  You’re there, and your attorney is there.  If you’ve filed bankruptcy jointly with your spouse, then he or she is there along with you.  If it’s a small business bankruptcy in Indiana and you have partners in that business, they would come to the meeting as well.

The trustee asks you questions about the bankruptcy documents I’ve helped prepare, detailing your assets, your income, your financial obligations, and your debts. 

Have you read the document?  Is everything correct on it? Have you listed all your creditors?  Are you expecting any sort of prize, cash award, or inheritance?  Have you given away assets within the past six months? 

If creditors’ have come to the meeting, they are allowed to ask you questions as well.

Once the trustee if satisfied that all the information is in your documents and that you’ve answered truthfully, the meeting is over and the first stage of the bankruptcy process is complete.

Often, in these Mark Zuckerberg Bankruptcy in Indiana articles, I refer to the “bankruptcy court” or the “bankruptcy judge”. 

Truth is, though, that of the tens of thousands of people to whom I’ve offered Indiana bankruptcy help over the past 25 years, only a handful ever got to see a bankruptcy judge or “go to court” in the way we see in criminal cases on TV.  As all my colleagues in the four Zuckerberg bankruptcy law offices will confirm, most of your contact is with your Indiana lawyer for bankruptcy.

As your Indiana bankruptcy attorney, after I’ve helped you complete your financial statements and you’ve signed them, I submit those to the court on your behalf.  The only time you yourself would expect to be anywhere near an actual courtroom is at the bankruptcy creditors’ meeting, which might not even be held at the courthouse itself. (I’ll be explaining more about what happens at the creditors’ meeting in my next article.)

I can assure you, based on my experience as a debt consolidation lawyer offering bankruptcy services in Indiana, that even at the creditors’ meeting itself, you will not be facing a judge. Instead, the meeting is run by a trustee.  If you’re filing bankruptcy Chapter 7 in Indiana, the person in charge is called an Interim Trustee; if you’re filing under Chapter 13 bankruptcy law in Indiana, there will be a Standing Trustee.

The trustee is going to be in charge regardless of whether you're filing because you need payday loan debt help, help to stop foreclosure, help with medical debt, or even student loan debt help.  I will be working with you to prepare the petition, but the process itself is very standard.

The trustee is generally an attorney from the local community, working under the supervision of a U.S. Trustee connected with that region.  As an Indianapolis lawyer for bankruptcy, for example, I work within the Southern Indiana Bankruptcy District.
Once your bankruptcy petition has been approved, the trustee will be managing and overseeing the process.  You no longer need to deal with your creditors, who will be notified that you’ve filed personal bankruptcy in Indiana, and that they are to halt all collection efforts against you.  All that is handled by the trustee.

So, with whom can you expect to “hobnob” during the process of filing bankruptcy in Indiana? Briefly, with the bankruptcy trustee who is managing your case.  Most of the time, you’ll be dealing with an Indiana lawyer for bankruptcy like me!

At the Zuckerberg bankruptcy law offices, we’re all about people and about numbers, in just that order.  While statistics can sometimes be of help to me in understanding trends and in predicting how a bankruptcy Chapter 7 petition is likely to be received by the court, the  truth is each couple, each individual, each small business is unique.

I think the main reason it’s important for me to share statistics about individual bankruptcy in Indiana is so that clients won’t feel they’re the only ones that are going through financial difficulties.  The reason that’s important, in turn (I’ve learned over 25 years of practicing Indiana bankruptcy law), is so you’ll stop wasting energy on “shame and blame” and get down to business.  You’ll move forward, I hope, with the decisions that will lead you towards that fresh financial start you need and deserve.

“Who” statistics:
Statistics published by the Administration Office of the United States Courts show that debtors who file personal bankruptcy represent all age groups, from under 20 years old to seniors, with the majority being in their 40’s. In my own 25-year long practice of Indiana bankruptcy law, I’ve helped tens of thousands of debtors, with many being older, some much older than 50.

“Why the problem” statistics:
Yahoo!Finance lists the “top 5 reasons people go bankrupt”:

• Medical expenses
• Job loss
• Excess use of credit
• Divorce or separation
• Unexpected expenses, including theft, accidents, natural disasters

Actually, these same reasons account for many instances of small business bankruptcy in Indiana, I’ve found.
http://finance.yahoo.com/news/pf_article_109143.html

“Why the people” statistics:
NewJerseybankruptcycenter.com lists more top reasons people choose to file:

• To help stop foreclosure
• To prevent repossession of a car
• To restore utilities or prevent shutoff
• To provide student loan debt help
• To stop wage garnishment
• To deal with a lawsuit

Bankruptcy statistics are not the happiest of numbers, that’s for sure, although this year’s numbers are looking somewhat better than last years in the Southern Bankruptcy District of Indiana (in which I, along with my Anderson, Indianapolis, Bloomington, and Columbus bankruptcy lawyer colleagues practice). Overall bankruptcy in Indiana decreased 14% this year, making us #7 in the nation in overall 2011 filings, #6 in the nation for filing  bankruptcy Chapter 7 in Indiana.

There may be solace in statistics in that you’re hardly alone.  The only numbers that matter, though, are your numbers, and the only thing that matters is turning negatives into positives – for you – in filing personal bankruptcy in Indiana!.
 

If you’re a handyman (or woman), you know how important it is to use the right tool for the right job. Chapter 13 bankruptcy law in Indiana is a tool designed to help stop foreclosure.

Do you go straight for that tool at the very first sign of a problem keeping up with your mortgage? Of course not.  This is my 25th year as a debt consolidation lawyer offering Indiana bankruptcy help.  You can be sure that, especially in recent years, every one of the Indiana bankruptcy attorneys who works in the Zuckerberg bankruptcy law offices tries negotiation first. 

In fact, ever since the beginning of the housing downturn, we’ve all become experts in negotiating mortgage modifications.  When that process has proven unsuccessful (with most of the problems being on the creditors’ end, not ours!), it’s only then we reach for the blockbuster tool which Chapter 13 bankruptcy represents.

Just like bankruptcy Chapter 7 Indiana, filing under Chapter 13 bankruptcy law immediately triggers the Automatic Stay, putting a halt to almost all collections efforts and legal actions against you (child support , tax and legal obligations are examples of exceptions to this rule).

The reasons Chapter 13 is the perfect tool to help stop foreclosure, and the reason that I, a longtime bankruptcy lawyer in Indiana always explore this possibility with clients who want to file personal bankruptcy in Indiana  include:

Chapter 13, as Bankruptcy action.com explains, consists of a debt repayment plan.  In most cases, foreclosure is put off while the homeowner works out a plan to catch up with the back payments over time (three to five years).

One other aspect of Indiana bankruptcy imformation it's important to share is that other, unsecured, debts can be discharged (forgiven) under Chapter 13 bankruptcy law, freeing up money to keep up the payments on the mortgage.

If there is a second mortgage or home equity loan, but the home is “underwater”, meaning there’s more money owed than the home is worth on the market, the second mortgage might be discharged through bankruptcy.   As the Bloomington and Columbus bankruptcy lawyers who work with me point out, that takes a lot of pressure off the homeowner!

If you’re a handyman, knowing your neighbor has a problem and knowing you’ve got just the right tool to help him fix that problem, you’d want to tell him or her, right? You can readily understand, then, why an Indianapolis lawyer for bankruptcy like me wants to pass along this information about Chapter 13 bankruptcy – the perfect tool to help stop foreclosure!

Post-bankruptcy, “American Airlines continues to operate flights, honor tickets, and take reservations.” explains the Associated Press. The reporter might have been talking about people who’ve filed personal bankruptcy in Indiana, as much as about a giant airline. Despite the many bankruptcy myths that circulate about how life will be interrupted by filing individual bankruptcy in Indiana, the truth is that life mostly goes on as usual, just without all the pressures that led up to the bankruptcy.

By the way, none of us who work in the Zuckerberg bankruptcy law offices was very surprised to learn about American Airlines. Remember that Delta, United, Continental, and U.S. Air have all gone through Chapter 11 reorganization bankruptcy.

Of course, despite my being a longtime debt consolidation lawyer offering bankruptcy information in Indiana, I’ve never had a mega- corporation such as American Airlines as a client.  As I study the news, however, I’m always struck by the similarities to the stories of small business bankruptcy in Indiana and even the stories of couples, of single moms, of service veterans, and young and old people who take advantage of the safety net offered to them by the new Indiana bankruptcy laws.

At the same time, as my colleague the Columbus bankruptcy lawyer reminds me, all of us who provide bankruptcy services in Indiana are keenly aware that there is bound to be a “ripple effect” whenever a large company files bankruptcy.  According to the Ft. Worth, Texas Star Telegram, “Economists, academics…and industry consultants are relatively unworried about how the airline’s Chapter 11 bankruptcy reorganization will affect the broader Fort Worth-Arlington economy and the airport in particular.”

Still, as the newspaper reporter points out, AMR has long been the country’s largest employer, and “the airline’s employees and retirees are likely to be among the first to feel the consequences of bankruptcy.” The government’s Pension Benefit Guaranty Corp. said last week that it expects to pay about $17 billion of the company’s $18 billion in promised retirement benefits.

On the surface, that sounds pretty good.  But, after 15 years offering Indiana bankruptcy help, I know that missing $1 billion is going to create a hardship for many retirees who are already financial stretched and need help to stop foreclosure on their homes, which have lost a lot of value.  Every day in my Indianapolis bankruptcy law office, I’m seeing folks who are having a hard time surviving financially in retirement, as the value of their homes declines and their healthcare and other expenses continue to rise. Of course, if they need student loan debt help as well, that makes the situation even more difficult.

For many years, as other airlines filed bankruptcy, some more than once, American Airlines resisted going down that path. Fortunately, the company did not wait until its problems got totally out of control; the airline has $4.1 billion to keep running while it restructures its debt.

The lesson for Bankruptcy in Indiana readers from Mark Zuckerberg is this: Seek professional help at the first signs of financial trouble.  Take a tip from American Airlines; by acting when they did, the company kept their options open, doors that would have closed had they continued to put off taking positive action.

As you may imagine, since I lecture on bankruptcy around the country, write books on how Indiana bankruptcy law works, and write all these Bankruptcy in Indiana articles, I’m interested in language and always looking for ways to express important ideas. 

There’s one phrase that has come into the language recently, that I wish would go away – “foreclosure pets”. With all of us Anderson, Bloomington, Indianapolis, and Columbus bankruptcy lawyers doing all we can to help stop foreclosure, we know that animals are often left behind when a home is foreclosed. 

The sad thing of it is, as a debt consolidation lawyer, I’m often seeing people who are at a low point in their lives. I’m no psychologist, but, after 25 years of listening to all sorts of human stories, I know that, when people are able to keep their pets with them when they’re forced to move because of foreclosure, the pets help the people deal with the crises in their lives.

Bankruptcy itself, of course, relates to income, assets, and debt.  How are animals viewed under Indiana bankruptcy law?  Are they considered “property”? That is a question that actually arises quite frequently in the Zuckerberg bankruptcy law offices. Since I helped create the exemptions portion of the new bankruptcy laws of Indiana, I’m in a unique position to answer that question.

First of all, even if you owe money to others, the law allows you to keep certain kinds of property, with those assets called “exemptions” and ruled off-limits to creditors. While in certain other states, debtors may choose between the federal list of exemptions and those of their state, in Indiana all debtors must use only the Indiana exemptions.  Those include a homestead exemption, a secured debt exemption, a public benefits exemptions, and a health aids exemption. There is no specific exemption for pets.

Under Chapter 13 bankruptcy law in Indiana, which is a debt repayment plan, all your expenses need to be listed.  If there’s a disproportionately large expense for a pet or pets, those expenses might not be allowed by the bankruptcy court.  Still, over the many years I’ve been a debt consolidation lawyer offering Indiana bankruptcy help, it’s been very rare for debtors to lose pets by being forced to sell those pets to satisfy debts.

While it’s a common myth that by filing bankruptcy in Indiana, you’ll lose assets, nothing could be further from the truth. The fact is....most people who file bankruptcy don't lose anything!
 

Whenever you learn of someone filing small business bankruptcy in Indiana, you can bet the owners are feeling “the ripple effect”. As a longtime debt consolidation lawyer offering bankruptcy services in Indiana, I see the effects of “recession ripple” day in and day out in my legal practice. 

You know how it works – you throw a pebble into a quiet lake, and a few minutes later there are ripples in the water a dozen feet from where the pebble entered.  Whipsaw is a form of ripple, too.  Someone unexpectedly stops his car in front of you, and to avoid hitting him, you slam on the brakes. It’s often your neck that painfully snaps back, giving you whiplash.

For these Bankruptcy in Indiana articles, I like to use current headlines to clarify the way the bankruptcy process works, but even more important, to debunk the myth that filing bankruptcy in Indiana (or needing help to stop foreclosure,  or needing payday loan debt help) means the debtor was not responsible in handling his or her money affairs.

One of the Columbus bankruptcy lawyers who works in the Zuckerberg bankruptcy law offices, knowing we have an office in Indianapolis, called my attention to a story in the Indianapolis Business Journal about an Indianapolis-based hotel owner who recently filed Indiana bankruptcy.

The company, an MHG Hotels affiliate which owns Comfort Inn in Avon and Comfort Suites in Fishers, just filed its case, one year after four other MHG suburban hotels had filed bankruptcy.

Back to the point of my story, the hotels’ owner was described in the IBJ as “a successful operator whose portfolio fell victim to forces outside his control.  Even though the hotels regularly won awards from franchisors for operations excellence, the travel and recreation markets they serve were decimated in the Great Recession.”

Because I and all the Indiana bankruptcy lawyers who work with me understand how very bitter a pill bankruptcy is for small business owners to swallow, we offer consulting services to help small businesses avoid bankruptcy, helping them prioritize the payment of expenses and negotiate with their creditors.

By the same token, we know that whether it comes to filing personal bankruptcy in Indiana, small business bankruptcy, or a combination of the two, sometimes there’s just no getting away from the ripple effect!