Small Business Bankruptcy Indiana

In high school we were taught that multiplying two negative numbers gets a positive number. That particular tidbit came to mind the other day in a discussion I was having with one of the Columbus bankruptcy lawyers who works in the Zuckerberg bankruptcy law offices.

We were actually talking about the drop that has been taking place in asset values – home values are depressed and investment asset values are down.  In short, the value of people’s “stuff” has dropped significantly over recent years.  What’s not down is the debt people have accumulated just trying to keep up. So, as a debt consolidation lawyer offering bankruptcy services in Indiana, what I’m seeing more and more of is negatives, starting with those negative asset values.

The second big negative that we lawyers for bankruptcy in Indiana are seeing is the difficult job market.  With layoffs and downsizings, and with restaurant chains and stores closing every day, lots of income that people need to pay expenses is being reduced or lost altogether.

So, can these two negative factors possibly be turned to advantage, becoming a positive? In a way, yes.  Since I've served as an Indiana lawyer for bankruptcy for 25 years, and in fact helped write the exemptions portion of the new bankruptcy laws of Indiana, I couldn't help thinking that California attorney Cathy Moran hit on something when she asks “Is Bankruptcy Your Best Investment?” Moran lists several reasons why filing personal bankruptcy during not-so-good economic times can be a very good idea, and one of those reasons is the drop in asset values I’ve mentioned.

In these Bankruptcy in Indiana articles, I’ve often explained why the idea of “losing everything” when you file personal bankruptcy in Indiana (or even file small business bankruptcy in Indiana) is simply a myth.  And the reason it’s a myth is bankruptcy exemptions. There is a list of property that debtors are allowed to keep, assets that do not need to be sold to pay back creditors. Fact is, it’s very, very rare for clients to lose any assets at all, because there are exemptions that help protect your house, your car, your truck, your household goods and furnishings, your IRA and other retirement plans, your life insurance, and your wages.

Going back to that high school math lesson I alluded to earlier about negatives adding up to a positive, what attorney Moran was alluding to when she said bankruptcy might prove a “good investment” was the fact that when exemptions are applied to assets that are way down in value because of the economy’s downturn, while at the same time income levels are down, the end result is people keep more of their assets..

No, filing individual bankruptcy in Indiana may not be anyone’s idea of a positive.  But the combination of a down economy and Indiana bankruptcy exemptions can work to the advantage  of debtors, becoming a positive force in their fresh financial start!

Sharing Indiana bankruptcy information sometimes involves using examples from other states.  And even though the Zuckerberg bankruptcy law offices serve only Hoosier debtors and their families, bankruptcy laws are constantly being refined as different situations come up across the country.

In fact, that’s one of the reasons all good bankruptcy attorneys in Indiana read professional journals.  The other day, one of the Columbus bankruptcy lawyers who is my colleague called my attention to an article in Consumer Bankruptcy News, about a bankruptcy court that dismissed a bankruptcy Chapter 7 case on the grounds that the couple did not qualify to file that kind of bankruptcy.

These debtors owed an awful lot of money - millions of dollars, actually, in unsecured debt.  The issue – they also had a lot of money coming in from their joint medical practice and lived a very high lifestyle (at least, in the judgment of the court). Since my goal in these Bankruptcy in Indiana articles is not only providing Indiana bankruptcy information, but also giving readers a better understanding of the whole idea behind the bankruptcy system, I thought this particular Michigan case would help in that regard.

As a longtime debt consolidation lawyer offering Indiana bankruptcy help, I realized right away that the couple in this real-life story, Dr. M. and Dr. A, had done several things “wrong”, which explains why the bankruptcy court rejected their petition.

• They didn’t disclose all the facts.  For instance, they did not put down in their bankruptcy paperwork that their medical practice provided them with two cars.  They didn’t tell the court about the $1000 per month payments they were making to support their niece.
  
• They didn’t show the court that they were trying to reduce spending. The bankruptcy judge noted that they needed to take steps to reduce their year expenditures, so that the money could go towards paying down their debt. 
  
• They mixed their business affairs with their personal affairs.  The debtors claimed that most of their debt was related to failed real estate investments, and that those were business debts. Therefore, they argued that they shouldn’t be expected to reduce their personal lifestyle to pay those debts.

As a longtime lawyer for small business bankruptcy in Indiana, I find this error in thinking is common.  There is no protection from creditors, no separation when it comes to legal matters (such as bankruptcy in Indiana)  when business owners mix their financial affairs with those of their business.

The court’s recommendation to the couple was that they reduce their personal spending by 50%, file a five year Chapter 11 bankruptcy plan that would pay their creditors at least a significant portion of what was owed.

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.

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!.
 

“While other businesses struggle to stay afloat, the debt-settlement industry is flourishing,” notes SmartMoney.com. It should come as no surprise to regular Bankruptcy in Indiana readers that, as a debt consolidation lawyer, I’d say all that flourishing comes at the expense of people who can least afford the additional pain and financial worry.

As bankruptcy attorneys in Indiana, all the lawyers who work in all four Zuckerberg bankruptcy law offices see the aftermath of what SmartMoney correctly calls the “hefty price” of debt settlements, with fees often running into thousands of dollars.  In fact, SmartMoney cites an example of someone with a $50,000 debt load who was charged as much as $10,000 in fees. “Those fees need to be paid before the consumer can start paying off the settlement itself,” points out the reporter. 

After 25 years offering Indiana bankruptcy help, including bankruptcy Chapter 7 in Indiana, Chapter 13 bankruptcy and small business bankruptcy in Indiana, I’ve seen more than my share of clients who, after paying those hundreds and even thousands of dollars in fees, were unable to complete the debt settlement program and ended up filing personal bankruptcy in Indiana anyway (which would have been the less costly and quicker solution from the start!).

By way of providing importantIndiana bankruptcy information, I wanted to share one very important judgment SmartMoney offered:  Besides the loss of money and time, debt settlement entails a real risk.

“Since debt settlement companies instruct consumers to stop paying their bills while they’re saving for a settlement, their balances continue to swell with interest and late fees and credit scores plummet.  In order to get paid, creditors may even sue.”

One of my Columbus bankruptcy attorney colleagues becomes especially enraged on behalf of her clients when she learns that they’ve been charged debt settlement fees without the banks or credit card companies who are their creditors having promised to settle anything!

“Debt settlement is sometimes confused with debt consolidation, in which borrowers are offered one big loan to pay off their smaller debts,” says Money.msn.com. “But debt settlement is a different animal.  Instead of offering a loan or repayment plan, debt settlement companies typically advise their clients to stop paying their bills and instead save up cash, which the company then will use to negotiate lump-sum settlements,” continues Money.msn.

As I’ve seen over and over again in my Indiana bankruptcy law practice, the creditors are not holding their breath or waiting politely for that settlement negotiation to take place.  In the true story highlighted by Money.msn, for example, the debtor was receiving what he called “brutal calls” every 15 minutes!

The fact is, only bankruptcy comes with an Automatic Stay.  Only bankruptcy stops those brutal phone calls cold and halts legal actions against a debtor.  Whether it’s bankruptcy Chapter 7 in Indiana or Chapter 13 bankruptcy law in Indiana we’re talking about, the bottom line is that only bankruptcy buys time to breathe!

Far too often, debt settlement does nothing but make matters worse!  Whether you need help to stop foreclosure or just help to stop creditors from calling or your wages from being garnished, individual bankruptcy in Indiana is the best tool for making a fresh financial start!

“In business, virtue is not always rewarded,” begins the article in the Chronicle Herald, referring to the American Airlines bankruptcy, and to the fact that AMR had tried hard to remain solvent when most of the other airlines had long ago filed bankruptcy. After 25 years as a debt consolidation lawyer offering bankruptcy services in Indiana, I can tell you – that statement about virtue not always being rewarded is true of life in general! 

As we in the four Zuckerberg bankruptcy law offices continue to offer Indiana bankruptcy help in tens of thousands of different situations, it’s abundantly clear that life isn’t always fair.  Whether we’re helping couples or individuals through bankruptcy Chapter 7 in Indiana, using the new chapter 13 bankruptcy laws in Indiana, or helping small businesses file bankruptcy in Indiana – we see it again and again: Effort and virtue do not always bring the desired results.

As one of my Columbus bankruptcy lawyer colleagues often points out to her clients, we deal with small businesses and with individuals, helping them confront debt issues.  We help stop foreclosure through Chapter 13 bankruptcy law in Indiana, help small businesses gain control over their expenses, even offer payday loan debt help and student loan debt help.  What’s so ironic is that in just about every situation, the people face the same type of credit crunch that American Airlines faced.  But unlike the giants who are in the news, with analysts reporting on each financial move, the “little guys” often suffer in silence, hoping for some kind of turnaround that never comes.

What I really liked about the Chronicle Herald article was the headline: “Bankruptcy may help airline return to blue skies of profit.”  The reporter explained that AMR’s plan is to replace its aging fleet with newer aircraft that are cheaper to run.  “Indeed, by allowing AMR to shake off some of its liabilities and cut its future costs, it will be in a better position to pay for those shiny new planes.”

I use examples of large corporate bankruptcies to show how the bankruptcy process “buys time” for a debtor company to restructure.  The whole idea behind Indiana bankruptcy law is to help debtors get back on their feet and have a chance at a fresh financial start. You might say the purpose of bankruptcy in Indiana is to lead to “blue skies of profit”!

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.

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!

To all the good bankruptcy attorneys in Indiana who work in the Zuckerberg bankruptcy law offices, Alabama is a long ways from home in terms of practicing Indiana bankruptcy law.

On the other hand, a recent piece of news out of Alabama was of great interest to us, because when, only weeks ago,Alabama County filed for bankruptcy court protection, it marked what Yahoo! News called “the biggest municipal bankruptcy in U.S. history”.

Municipal bankruptcy is actually a topic I’ve been mentioning in these Bankruptcy in Indiana articles, despite the fact that, in all the years I’ve been a bankruptcy attorney in Indiana, the new bankruptcy laws of Indiana have made no provision for a city or a town or county to file bankruptcy.

My work, which involves individual bankruptcy in Indiana and small business bankruptcy in Indiana , is different in that, when a city or town files bankruptcy, it may or may not sell assets to pay debts. The point of the municipal bankruptcy is that it allows time for the municipality to continue to provide services to the extent possible while trying to sort out the debts they have and work with a bankruptcy judge to find ways to settle these debts. For example, Chicago bankruptcy attorney James Chatz said the filing allows all sides to have a moment of calm and then try to reach an agreement. In the meantime, Jefferson County can continue to run its operations and pay its bills.

One of my Columbus bankruptcy lawyer colleagues hit the nail on the head when she observed that it will be very interesting to watch as the Alabama County bankruptcy case unfolds.  As the Huffington Post states, “The biggest civic bankruptcy in American history could leave residents of Alabama's most populous county paying astronomical rates for public services performed by a skeleton crew of county workers. Or it could simply mean tightening the belt another few notches, depending how much of Jefferson County's $4.15 billion debt will have to be paid. It's even possible that, just as companies have benefited from bankruptcy, that the county surrounding Birmingham will emerge stronger for it.”

As a longtime debt consolidation lawyer offering Indiana bankruptcy help, largely through
bankruptcy Chapter 7 in Indiana and through Chapter 13 bankruptcy law in Indiana, I’m very interested in what happens in Alabama. If the bankruptcy process proves to be a successful remedy to the problems there, other municipalities may be encouraged to file as well, including, potentially, law changes allowing for municipal bankruptcy in Indiana.

Will what happens in Alabama stay in Alabama?  This Indianapolis lawyer for bankruptcy is interested to see….

When a city or county files bankruptcy, it’s not the same as when a restaurant owner files small business bankruptcy in Indiana, or when an individual in our state files personal bankruptcy in Indiana.  No, it’s not the same, but, in many ways, it’s similar.

In all of the twenty five years I’ve been a debt consolidation lawyer offering Indiana bankruptcy help, there’s never been a provision for a city or town to file Chapter 9 bankruptcy in our state. There are two reasons I began, back in 2008, to write about municipal bankruptcy in these Bankruptcy in Indiana articles.  One of those reasons is that I wish municipal bankruptcy were allowed here and I would like to be involved in that type of work if ever that does come to pass.

A more important reason, though, is the similarities.  There are just enough similarities so that readers and clients seeking Indiana bankruptcy information can better understand the whole bankruptcy process and the principles behind it, just from following the news story.

Take the recent news about Vallejo, California, which has just emerged from the bankruptcy that I first mentioned three years ago.  Is everything just hunky-dory with Vallejo?  Of course not.  Bankruptcy – in Indiana, in California, or anywhere – is no miracle cure.  But are things better for the city?  Definitely.  “Declaring bankruptcy gave the city protection from creditors and allowed it to renegotiate its employee contracts,” explains the San Francisco Chronicle.

As one of the Columbus bankruptcy lawyers who works in the Zuckerberg bankruptcy law offices puts it – municipal bankruptcy forced Vallejo to create a more realistic budget.  Five fire stations needed to be closed and funding had to be reduced for some senior centers and library branches.  Some public works projects needed to be postponed.  Is that pleasant to do? Of course not, but, just as in individual bankruptcy in Indiana, Vallejo’s bankruptcy bought time for it to work out a budget that is more sustainable.

At the Mark Zuckerberg law practice, I’ve developed a saying: “To fix your credit, start with a bankruptcy.” Nothing ever gets better by ignoring the problems.  Bankruptcy in Indiana, just as it’s proving to be in California, marks a beginning – a fresh start, and a fresh budget.

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!

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

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

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

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

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

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

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!

Twenty five years in practice as a debt consolidation lawyer offering Indiana bankruptcy help, I learned, may have been dangerous to my health – my emotional health, that is. It seems that just this fall, an informal survey of National Association of Consumer Bankruptcy Attorney members revealed that, like most mental health professionals, most lawyers for bankruptcy – in Indiana and elsewhere - suffer from compassion fatigue.

Compassion fatigue is a form of physical, emotional, and spiritual exhaustion that especially affects those in the helping professions – doctors, caregivers, and…bankruptcy attorneys!  “Compassion-fatigued physicians, observes John-Henry Pfiffering, PhD, continue to give fully to their patients, finding it difficult to main a healthy balance of empathy and objectivity.”

Actually, I doubt if any of the good bankruptcy attorneys who work in the four Zuckerberg bankruptcy law offices spend much time thinking about the “hazards” of compassion.  We’re focused on the type of fatigue we see in the people who turn to us for help.  It’s interesting that another survey, this one by the Consumer Bankruptcy Project, revealed that people in financial trouble have a terrible sense of isolation, and their worry and tension over money troubles negatively affects their health.

Four years ago, when I decided to write these Bankruptcy in Indiana articles, I hoped to accomplish several things

• To prove that while life can be brutal, filing personal bankruptcy in Indiana need not be brutal at all.
  
• I wanted to reach people who need to do something about their debt situation, but who’d been paralyzed by fear and misinformation.
  
• I wanted to get across my ideas about the way clients who need Indiana debt help ought to be treated (compassion plays a big role here!)
  
• With hundreds of thousands of small businesses in Indiana, I wanted to help business owners stop blaming themselves and help them change direction through small business bankruptcy in Indiana.
  
• To alert readers to scams so that they could protect themselves. 
  
• To direct readers to the right government agencies and to sources of useful advice and help.
  
• To help stop foreclosure by raising awareness about mortgage modification programs.
  
  
  I must confess that, when one of the Columbus bankruptcy lawyers who is my colleague first showed me the article about compassion fatigue, I realized that it too often happens these days, that clients don’t have enough compassion for US!  It seems some clients have a sense of entitlement, even going so far as to treat my staff members poorly.

But, you know what? If compassion fatigue is part of this job, well, that’s just how it is.  After all, I declared 25 years ago that I and everyone who works in my office will first and foremost be good listeners and that we will "be there” for people, really hearing their concerns. I haven’t changed my mind about that.

No matter how many years pass, no matter how much student loan debt help we give, no matter how much payday loan debt help we offer, no matter how many tens of thousands of bankruptcy Chapter 7 cases or Chapter 13 bankruptcies we file, compassion and courtesy will be what you can expect to find with Mark Zuckerberg!

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!

When Techpoint Innovation Summit attendees gather for lunch tomorrow, the keynote speakerwill be Randi Zuckerberg, older sister of my namesake, “the other” Mark Zuckerberg, of Facebook fame.

I really look forward to hearing her discuss the goings on inside Facebook, but more than that, I hope to get to meet her. I'd like to see if her response to meeting Mark Zuckerberg is the same as many other people who meet me.
 
No stranger to the podium myself, I lecture all over the country on bankruptcy law, addressing groups ranging from Columbus bankruptcy lawyers to Senate subcommittees.  Financial planners, family law attorneys, and judges, knowing I helped write the exemptions portion of the new bankruptcy laws of Indiana, often ask me to explain ways in which those exemptions can be applied. Then, with foreclosures being a topic of concern all across the country, our efforts through the four Zuckerberg bankruptcy law offices to deal with mortgage modifications and help stop foreclosure  have caused that to be a requested speech topic.

I've followed the other Mark's rise to fame mostly be watching my name disappear from search results. I'd really like to meet him one day and perhaps meeting Randi tomorrow will help with that. Many people ask if I've become a stalker of sorts. I haven't. I don't obsess over what's going on with the other Mark Zuckerberg, but you'd probably take an interest in someone famous who shared your name. Right? 

While my honors don't include Time's Man of the Year, the tens of thousands of Indiana residents whom I’ve helped file personal bankruptcy in Indiana or small business bankruptcy in Indiana found me more useful than Facebook when dealing with their unfortunate circumstances.

In my own not insignificant way, though, I’ve come into the new world of online media.  Through this Bankruptcy in Indiana blog and many articles, I'm educating Hoosiers on issues related to bankruptcy in Indiana. I can be found on Twitter, and my Indiana bankruptcy law office has a page on Facebook.

Tomorrow, however, it’s going to be admiration that I’ll be feeling as I join in what I’m sure will be thunderous applause for Randi Zuckerberg. 

There’s nothing new about what I and all the good bankruptcy attorneys in Indiana who work in the Zuckerberg bankruptcy law offices think of payday lending.  We’re not in favor!

After 25 years as a debt consolidation lawyer offering Indiana bankruptcy help, I’ve seen my share of people needing payday loan debt help.  The reason payday loans tend to be so profitable for lenders (even banks are getting into the business nowadays), and so disastrous for borrowers is that most people ask for extensions on those loans.  One of the bankruptcy lawyers in Columbus told me she’s seen annualized interest rates on some payday loans go as high as 400%

In order to keep Bankruptcy in Indiana readers up to date, I read journals.  In a recent issue of Consumer Bankruptcy News there was a story about the Federal Trade Commission closing down one payday loan company that was going beyond charging high interest rates – they were actually committing fraud.  While consumers were filling out the online applications for payday loans, they were also unwittingly enrolling in food, travel, and merchandize discount programs, and their accounts were then being charged fees for programs those consumers didn’t know they had!

By way of not only providing Indiana bankruptcy information, but also protecting readers of Bankruptcy in Indiana against fraud, I’m providing this list of names used by this fraud-committing company:

• Direct Benefits Group
• Direct Benefits Online and Unified Savings
• Voice Net Global
• Thrifty Dial
• Solid Core Solutions
• WKMS, Inc.
• Kyle Wood
• Mark Berry

I certainly do not mean to imply that all payday lending involves fraud.  It’s just that those of us professionals involved with personal bankruptcy in Indiana and small business banakruptcy in Indiana know how vulnerable debtors can be when they’re under a lot of money pressure.

That’s why I urge readers – if you’re at the point of taking out payday loans just to keep the bills paid, you need to get professional advice.  Mark Zuckerberg says, "Stat!"

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”! 

While a reporter in Seattle, Washington is being quite pessimistic, saying “Even when employment starts growing, middle-class jobs will lag, as the U.S. slowly becomes more polarized between high and low wage work,” I can actually tell my Bankruptcy in Indiana readers that I’m a bit more optimistic about jobs in our own state.

Sure, after 25 years as a debt consolidation lawyer and lawyer for bankruptcy in Indiana, I’ve seen the effects of the past few years’ recession up close and personal in the numbers of owners filing small business bankruptcy in Indiana. 

But what I’ve also seen is small businesses emerging from bankruptcy and rebuilding themselves, and small businesses “morphing” into other, more updated business ventures.  What’s more, every one of the bankruptcy attorneys in Indiana who works in the Zuckerberg bankruptcy law offices has success stories to tell of consulting with small business owners, helping them prioritize payment of expenses and negotiating with lenders on their behalf, and helping those business owners avoid bankruptcy!

• One of my Columbus bankruptcy lawyer colleagues quoted a Republic news item saying “The local job market in August had improved significantly from a year earlier, with more people holding jobs and fewer residents reported unemployed.” 
  
• Area Development Online ranks Indiana fifth overall among the top states for doing business, first for its rail and highway accessibility, and second as a leader in economic recovery.
  
• “Despite economic woes, Indiana manufacturers are finding work,” reports MFG about the metal manufacturing marketplace in our state.
  
• Japanese auto parts maker KYB North America plans to add 50 jobs in Franklin.
  
• Global Blade Technology of the Netherlands is investing close to $18 million to manufacture wind turbine rot blades in Evansville.
  
• Two companies are setting up operations in Rome City, Indiana near Fort Wayne, Precision Medical Technologies and Momentum Industries, which will create at least 18 new jobs.

You can see why this kind of news would gladden the heart of any small business bankruptcy attorney in Indiana – big companies expanding always has a positive “ripple effect” on small businesses.  And while the Zuckerberg bankruptcy law offices serve only the central and southern parts of the state, good expansion in the north has its own “ripple” southward that benefits Hoosier businesses in our area.

The one sobering note in all of this hopeful news is that Inside Indiana Business reports that of all U.S. states, Indiana is among the lowest in income growth, commenting that our job growth has been driven by manufacturing, and since new hiring in manufacturing has stalled, that’s affected incomes . 

When your work involves helping people struggle with everything from foreclosures to student loan debt help and even payday loan debt help, dealing with small business owners struggling to survive, it’s difficult to ignore the effect our jobs market has on bankruptcy in Indiana.
 
It’s even more difficult to ignore the reality that income from jobs (and that means from jobs in both large and small businesses in Indiana) is the key to anyone emerging successfully after filing either personal bankruptcy in Indiana OR small business bankruptcy in Indiana!