Student Loan Debt Help

For me as an Indianapolis bankruptcy attorney, the best news I heard was that Finish Line plans to add 327 jobs to the 700-person labor force it already has in Indiana. And, although Albion is far north of where the four Zuckerberg bankruptcy law offices are located, I was happy to read that a New Busche plant is opening there, with the company planning to add 120 jobs. Construction job growth in Indiana as a whole rose by more than 7,000, according to the Louisville Business Journal.

When one of my Columbus bankruptcy lawyer colleagues called my attention to the fact that the Arden plant in Kendallville plans to close next month, causing 46 workers to be laid off, that, on the other hand was not welcome news at all.

Since for the past 25 years I’ve been a debt consolidation lawyer offering Indiana bankruptcy help, the availability of good jobs is of great importance in the work I do. When there are well-paid jobs to be had, debtors are able to get back on their financial feet after filing personal bankruptcy in Indiana.  Those who’ve filed individual bankruptcy under Chapter 13 bankruptcy law are able to keep up with their scheduled debt repayments. People still need help to stop foreclosure and sometimes student loan debt help, but at least fewer come to see us bankruptcy attorneys in Indiana looking for payday loan debt help. (Readers of  these Bankruptcy in Indiana articles know what a low opinion I have of payday lending.)

Recently, the Labor Department came out with a very hopeful statistic: the percentage of adults working in the U.S. has reached 58.6 percent, the highest level in two years. On the minus side, Indiana remains one of the worst states when it comes to the wage gap between men and women.

The new bankruptcy laws of Indiana are designed to offer honest debtors the chance to make a fresh financial start. That’s what my legal career has been is all about. Remember President Clinton saying “It’s the economy, stupid!”  Well, neither I nor my clients are stupid, but for us, it really is all about the economy and the jobs!

Remember the late-night TV hawker telling you his team of former IRS agents have helped thousands of “good people just like you” battle the IRS?  Well, it seems TaxMasters has lost the battle, because that firm just filed bankruptcy. A very similar firm, J.K. Harris, had already filed bankruptcy last year.

At the Zuckerberg bankruptcy law offices, we’re hardly surprised, because many of the Indiana taxpayers who have been left stranded have been coming to us.  By this time, many need help to stop foreclosure, payday loan debt help, and student loan debt help, on top of having big fat tax problems!

Ironically, (and very sadly), most of these clients never thought a bankruptcy attorney in Indiana would be able to help with tax problems.  So, instead, they tried the late-nite TV route to gain relief from their biggest, baddest creditor – the IRS.

In fact, one very common myth is that bankruptcy cannot help with back taxes. That is simply not true. As a debt consolidation lawyer offering bankruptcy services in Indiana for more than 25 years, I can tell you we get rid of old income tax bills for clients all the time. Taxation and knowing all the ins and outs of the legal advantages is one area where experience counts.

Just  one important example is an IRS Offer of Compromise. That option needs to be weighed and compared with filing personal or small business bankruptcy under the new bankruptcy laws of Indiana.

One of our Columbus bankruptcy lawyers remarked that it’s very deplorable that many clients have paid fees to TaxMasters to help them with their tax problems, and most of that money will never be recovered  (just adding salt to the wounds of these poor people).  For those who paid TaxMasters to help them with their small business taxes, things are even worse.

Whether you’re a former clients of TaxMasters or not, if you live in the Anderson area or anywhere in Indiana south of there, know this: At the Zuckerberg bankruptcy law offices, you can get help with tax problems along with other debt problems. 

This spring, news about student loan debt has been taking front and center stage, and all good bankruptcy attorneys in Indiana are paying close attention.

The issue itself is hardly new.  In these Bankruptcy in Indiana articles, I’ve pointed out many times that the new bankruptcy laws of Indiana, which follow federal guidelines, generally do not allow for student loans to be discharged in bankruptcy.  The ongoing efforts of Senator Dick Durbin to change the situation is something all of us in the Zuckerberg bankruptcy law offices heartily applaud and support.

The Seattle Times wonders whether “the problem is shaping up to become America’s next economic crisis.” My colleagues the Bloomington, Indianapolis, Anderson, and Columbus bankruptcy lawyers are concerned, too.  More and more former students visit us seeking student loan debt help, sometimes (in the worst cases) along with payday loan debt help.

Having served as a debt consolidation lawyer for more than 25 years, I’m glad to see the problem finally getting the attention it deserves.  What has been triggering all the latest news is a deadline, only six weeks from now.  Yes, on July 1, 2012, the interest rate on federal student loans is scheduled to double.  As rates go from 3.4% to 6.8%, a big, bad problem will become even worse.

“Unlike other forms of consumer debt, student loan debt is growing,” points out the Washington Post, adding that “the number of borrowers defaulting on federal loans has jumped sharply recently.” 

To put this information in perspective, let me add some qualifiers:

• Loans issued before July 1, 2012 will not be hit with the higher rate.
• The jump in rates will not affect Stafford loans (already at 6.8%) or PLUS loans for parents (now at 7.9%).

Now, if the new bankruptcy laws of Indiana DON”T change and the interest rate hike DOES happen, can filing personal bankruptcy in Indiana help in any way?  Make that a “yes”.  Here’s how:

Other consumer debt can be discharged through bankruptcy.  That is true for both bankruptcy Chapter 7 in Indiana and for bankruptcies filed under Chapter 13 bankruptcy law.)  Those discharges can free up cash that can be used towards student loan repayments.

The debates go on, and the news can change every day.  Stay tuned here to these Bankruptcy in Indiana articles, so you can stay up to date on student loan debt.

I can tell you, all the Indianapolis bankruptcy attorneys who work in the Zuckerberg bankruptcy law offices were happy to read the Indianapolis Business Journal article explaining that “the Indianapolis jobs picture is brighter than previous reports indicated.” 

This won’t be the first time I’ve emphasized to Bankruptcy in Indiana readers how crucial it is for those who’ve filed personal bankruptcy in Indiana to have regular, sufficient income from jobs. That holds true not only for those debtors who file under Chapter 13 bankruptcy law in Indiana (who must have income to keep up with their 3-5 year debt repayment plans), but even for those who file bankruptcy Chapter 7 in Indiana (who need to keep the bills paid and re-establish their financial lives).

“But problems persist,” adds the IBJ. “There’s been no increase in the number of high-paying manufacturing jobs since early 2011….New jobs here tend to be lower-paying service jobs, meaning average wages aren’t keeping pace with inflation.”

Since every day we’re working with people who need payday loan debt help, student loan debt help (more about that topic next time), and help to stop foreclosure, we lawyers for bankruptcy are happy for each job announcement.  Two recent good-news items are:

• Steering manufacturing company ThyseenKrupp Presta in Terra Haute, Indiana, is expanding its manufacturing facility and plans to create 120 jobs over the next two years.
• Cummins  announced it’s building a new office building and warehouse in Seymour, Indiana, and plans to add 290 jobs over the next three years.
   

Statistics are moving along this kind of hopeful track as well, with the number of Indiana bankruptcy “terminations” increasing (meaning people emerging from bankruptcy to make a fresh financial start). Bank loan statistics are increasing as well.  In other words local bankers are seeing an increase in loan demand by Hoosier business owners, according to the IBJ. Since Indiana is home to so very many small businesses, their expansion is good for those who need to find jobs.

For all these reasons, I’ve considered it part of my job, part of offering Indiana bankruptcy information, to write about jobs in our state and to gather bankruptcy statistics. Here we are at the beginning of May, and the latest statistics that I’ve found going through the month of March. After more than 25 years practicing Indiana bankruptcy law, I know that March and April tend to be high months for bankruptcy filings (partly because of tax refunds providing cash for filing fees).
 

When it comes right down to it, for the process of Indiana bankruptcy – individual or small business bankruptcy in Indiana - to succeed, it takes jobs!

“Some Americans spend their tax refunds on high-tech gadgets and long-awaited vacations.  Others use the cash to file for bankruptcy protection,” writes columnist Tammy Bruce.

The National Bureau of Economic Research confirms Bruce’s observation.  Of course, as a longtime debt consolidation lawyer offering Indiana bankruptcy help, I could have told Tammy Bruce that fact myself!

Zero Hedge.com calls the situation “another sad reflection on the state of the economy”, citing a USAToday report showing “more than 200,000 households will use their tax refunds this year to pay for a bankruptcy filing and associated legal fees.”

For 2012, the tie between 2011 tax refunds and bankruptcy in Indiana is already evident at all four Zuckerberg bankruptcy law offices.  In fact, as one of our Columbus bankruptcy lawyers reminds me, although people come to us needing help for different problems, including:

• Help to stop foreclosure
• Student loan debt help
• Payday loan debt help
• Debt problems relating to divorce

One thing those people say prevented them from coming in earlier is that they hadn’t saved enough money to pay the bankruptcy filing fees.  It seems that reality holds true for bankruptcy Chapter 7 in Indiana cases as well as for those filing under Chapter 13 bankruptcy law, and even for filers of small business bankruptcy in Indiana.

It hurts me to think of debtors as walking on a narrow plank over a river – equally afraid of falling off on either the left or right side.  On the one hand, you need to turn off all the harassing collection calls, along with the rising late penalties and interest charges.  On the other side, you simply don’t have the money, you think, to cover the legal costs of filing individual bankruptcy in Indiana.  What are those costs?  Several thousand dollars for Chapter 13, several hundred for Chapter 7.

By now, I hope you’ve already filed your 2011 tax returns (or filed for an extension). No matter which, I’m going to urge you not to wait.  Visiting with an experienced Indiana lawyer for bankruptcy is the first step to take in order to explore your options and get a plan into place.  The good news is, you don’t need cash or a tax refund to do that!

“Student loan debt is just one step behind the IRS on the ladder of debt longevity,” says Steve Bucci of Bankrate.com.  What Bucci means, as I often explain to clients who come to the Zuckerberg bankruptcy law offices in need of student loan debt help, is that there’s no statute of limitations when it comes to student loans.

Each state has statutes of limitations, which are time limits after which debt is no longer legally enforceable.  In Indiana, where I’ve been a lawyer for bankruptcy for the past twenty-five years, the statute of limitations on credit card debt is six years, and, on written contracts, ten years.  Statutes of limitation exist for most federal crimes, too, with the exception of certain offenses such as espionage and treason – and…bankruptcy!

One other way in which student loan debt is an exception to the general rule is that it’s almost never dischargeable through filing personal bankruptcy in Indiana.  Basically, most courts have held that you are stuck with student loans unless you can prove you are permanently and totally disabled – or totally unable to earn even the barest of a living wage.

Has that always been true? one reader of my Bankruptcy in Indiana articles wanted to know. Not really.  Before 1976 (ten years before I had begun offering Indiana bankruptcy help), federal student loans could be discharged in bankruptcy.  One of the Columbus bankruptcy lawyers who works with me made a list of law change since then:

• The 1978 Bankruptcy Act excluded student loan debt from being dischargeable unless the loan had been in repayment for five years or more.
   
• In 1970, the five-years was changed to seven years.
   
• In 2005, Congress eliminated the discharge altogether on all federal loans and most private student loans. The only exception became “undue hardship”.
   

I need to remind Bankruptcy in Indiana readers that this non-eligibility for bankruptcy discharge of student loan debt applies whether you are filing bankruptcy Chapter 7 in Indiana or filing under Chapter 13 bankruptcy law.

All good bankruptcy attorneys in Indiana continue to join their colleagues in other states in appealing to Congress to change the laws.  In the meanwhile, the way we help clients is that filing personal bankruptcy ion Indiana puts the student loan collectors on hold for as long as five years, giving debtors some breathing room and a chance to get rid of other debts.
 

Our clients are in essence saying “Gimme a break!”  Bankruptcy can do just that!

The new bankruptcy laws of Indiana may be strict, but in another sense, they’re generous.  That’s especially true when it comes to people filing personal bankruptcy in Indiana who still want to give to charitable causes while paying their debts.

In these Bankruptcy in Indiana articles, I’ve often talked about bankruptcy myths, one of which is that only financially careless people ever file individual bankruptcy in Indiana.  The fact is, not only  are typical debtors who seek Indiana bankruptcy help far from “deadbeats”, often they want to help others less fortunate than themselves!

One of my colleagues, a Columbus bankruptcy lawyer, called my attention to a headline in Forbes Magazine: “Debtor’s Charitable Giving Limited to 15% of Gross Income in Bankruptcy”. In a recent ruling in a Colorado bankruptcy case, it seems, the court allowed a couple to give 15% of their gross income to their church, even though that meant less money would be available to pay their creditors under Chapter 13 bankruptcy law.

Over the twenty five years that I’ve served as a debt consolidation lawyer offering Indiana bankruptcy help, charitable giving during bankruptcy has been handled in different ways.  Back in 2006, for example, we in the Zuckerberg bankruptcy law offices were discussing a New York ruling which said that debtors who had above-median income could not make any charitable donations while they were in their debt repayment plan period.

I’m happy to report that current law allows contributions if:

• The money is going to an approved “qualified” religious or charitable organization
   
• The contribution isn’t more than 15% of the debtor’s gross income.
   

I must say that, for most of the people who come to me needing help to stop foreclosure on their home, help recovering a car that’s been repossessed, payday loan debt help, or student loan debt help, charitable giving is not at the top of their minds as they contemplate filing individual bankruptcy in Indiana.

On the other hand, debtors need to make some hard, even painful decisions as they prepare to file bankruptcy. Feeling that they can still do their part for a cause they believe in helps get them through, holding their heads high until they get back on their financial feet!

More and more these days, debt consolidation lawyers like me are dealing with adults, long out of school, who are in need of student loan debt help.  Nowadays, in fact, student loan debt is hitting the headlines – and the Senate floor.

The issues surrounding student loan debt were summarized by Senator Durbin, who recommended the elimination of the law that makes privately issued student loans non-dischargeable in bankruptcy.

All of us in the Zuckerberg bankruptcy law offices know all too well that the new bankruptcy laws of Indiana (which follow the federal guidelines) treat student loan debt in a fashion similar to child support debt, alimony debt, overdue taxes, and criminal fines.  My colleagues the Columbus bankruptcy lawyers often quote Illinois senator Dick Durbin, who said “Students who take out loans to finance their education should have the same right to discharge their debt in bankruptcy that other borrowers enjoy.”

Actually, as I often remind Bankruptcy in Indiana readers, while student loans are very, very difficult to discharge, it’s not impossible to do that.  Courts evaluate a debtor’s “degree of hardship”.  If the following three things are true (and in the 25 years I’ve been a lawyer for bankruptcy in Indiana, there have been isolated cases where all three of these were true), there is a chance that the bankruptcy court will rule in favor of a discharge of student loan debt.

•  Debtor could not possibly maintain even a minimal standard of living for him/herself and for dependents if he/she were forced to repay the student loan
   
•  This state of affairs is likely to persist throughout the repayment period
   
• Debtor has made a good-faith effort to repay the loans, but just couldn’t do it

Remember, by the time someone has come to me seeking Indiana bankruptcy help, things are already bad.  Very bad. Years and years may have passed since her college days, but she lost her job last year and couldn’t keep up the payments. Or, he may have recently graduated but failed to find work in his field.  In either event, by the time they arrive in my Indianapolis law office, debtors often need help to stop foreclosure, or even payday loan debt help.

This is all part of a very big, very bad statistic: Outstanding student loan debt reached $867 BILLION at the end of last year, greater than the total U.S. credit card debt!

So, under current Indiana bankruptcy law, is there hope for people who need student loan debt help?  The answer is “yes”.  And that’s true even if you can’t prove “hardship” under the existing very tough rules.  The very act of filing personal bankruptcy in Indiana triggers the automatic stay, giving you breathing room and protecting you from collection actions on all debt. 

While the bankruptcy/ student loan debate rages on, at my Indiana bankruptcy law offices, the help continues, dealing with problems one situation at a time!

 Late-night TV watching can be very bad for your financial health, I want to again warn all Bankruptcy in Indiana readers.  And, if you don’t believe me, just catch the recent news about TaxMasters.  You remember the redheaded guy on cable, telling you that he and his crew of former IRS agents have helped “good people just like you” battle the IRS? 

For more than twenty-five years, as a debt consolidation lawyer offering bankruptcy services in Indiana, I’ve been trying to get a message of my own across to “good people just like you”.

The tens of thousands of those good people I’ve been able to help at the four Zuckerberg bankruptcy law offices have understood that the way to a fresh financial start does NOT begin at 2:30 AM on their television set.  Whether the best road is bankruptcy Chapter 7 in Indiana or filing personal bankruptcy using Chapter 13 bankruptcy law, or neither of these, the important thing is not to allow precious “time windows” to close before checking out the legitimate options for financial help.

One of my Columbus bankruptcy lawyer colleagues has been collecting news items about these late-nite TV advertisers. Here are just a few of the things she learned:

• Just one month ago, after Houston-based TaxMasters had been accused by attorney generals in two states of deceptive business practices, the company filed bankruptcy.
   
• Another late-night regular advertiser, JKHarris & Co, sued by two states and thousands of unhappy customers, filed bankruptcy last October. 
   
• Roni Deutch (“the Tax Lady”) not only filed for bankruptcy last year, she surrendered her law license!
   

It’s very typical for me to learn, from clients visiting me to ask for Indiana bankruptcy help, that they have first tried other avenues in their attempt to gain relief from creditors. A single mom might have tried to get student loan debt help by negotiating with her lenders – to no avail. A couple trying to keep their mortgage paid after a job loss may have tried to negotiate a mortgage modification – unsuccessfully – and now they need my help to stop foreclosure.  Other debtors may have made payments for many months into a “debt consolidation plan”, only to learn their credit card debt has skyrocketed through late payment fees and increased interest rates. Many, in desperation, have reached the point where they need payday loan debt help from me.

There’s one thing you need to know about Mark Zuckerberg and about bankruptcy attorneys in Indiana in general: An experienced bankruptcy lawyer in Indiana can offer counseling on managing money and budgeting. An experienced attorney for bankruptcy can offer debt consolidation and legal advice about dealing with tax debt.  Only a lawyer can offer legal advice.

But, (and here’s “the thing”)  There’s a reason government regulators and consumer advocates continue to put unscrupulous firms promising quick-fixes on late-night TV out of business!

Goodness knows, when you’re a debtor contemplating filing individual bankruptcy in Indiana, you won’t need to look very far to find suggestions for what to do instead. In fact, companies offering different kinds of debt relief will probably be looking for you! 

Now, I’ve been a debt consolidation lawyer offering Indiana bankruptcy services for more than twenty-five years, but things have gotten a whole lot more confusing for consumers during the recent recession.  With options of every possible sort being offered via radio and late-night TV or on the Internet, the expression “debt relief” has come to mean many different things to many different people.

The real problem is that when creditors are making your life miserable while you cope with job loss, divorce, and medical costs, you’re not in the best frame of mind to understand those differences.  My Columbus bankruptcy lawyer colleagues, for example, are constantly discovering new “debt settlement companies”.  These agencies have debtors deposit money every month into a trust account.  Once a certain amount has accumulated (which takes a long time, with upfront fees to the agency being deducted), the agency tries to work out a deal with creditors for a reduced lump sum payoff.  Of course, as I keep warning Bankruptcy in Indiana readers, no deal is guaranteed to ever happen, and, meanwhile, the late fees and penalties continue to pile up from those creditors not getting paid.

Debt consolidation companies, on the other hand, offer to combine all your bills into one monthly payment, with idea being to get creditors to make deep interest rate cuts (again, nothing is guaranteed to happen).  Meanwhile, the debt consolidation company is charging nonrefundable fees of its own.

New forms of “debt help” are constantly being offered to consumers.  Sometimes, after so many years of offering Indiana bankruptcy help, working with people who need everything from student loan debt help to payday loan debt help to help to stop foreclosure, I think I’ve seen every possible type of possible alternate “debt help” that can possibly be invented.  The worst of it is, many of the organizations running those late night TV ads or internet ads are simply scams.

State and federal regulators work hard to protect the public against scams, but a lot of well-meaning people fall for them all the same, wasting money they don’t have, and time they can’t afford, as they seek so-called “debt relief” rather than professional Indiana bankruptcy help.

No, numbers don’t lie, but as longtime bankruptcy lawyers in Bloomington, Indiana, we know numbers often need to be explained and analyzed in order for those numbers to convey the right message.  Take job statistics, for example.  It’s extremely important for all the attorneys who work in the four Zuckerberg bankruptcy law offices to follow employment news and to keep our clients and Bankruptcy in Indiana readers up to date on available jobs in our state.

In fact, when it comes to Indiana bankruptcy, jobs are important at every step in the process. For those filing under Chapter 13 bankruptcy law, it’s the regular income from employment that will be the key to qualifying for a three to five year debt repayment plan.  And, for debtors using Chapter 13 to help stop foreclosure, employment income will make all the difference as to whether they succeed. Of course, regular income from a job will be the key to all debtors’ success, whether they’re filing bankruptcy Chapter 7 in Indiana or even small business bankruptcy in Indiana.

The website UScourt.gov compares bankruptcy cases commenced or terminated in 2011 as compared with the year before that (As one of my Columbus bankruptcy lawyer colleagues pointed out, 2012 statistics are not yet available.) For the Indiana Southern Bankruptcy District (Mark Zuckerberg territory), the number of filing actually dropped 6 ½% during the twelve months ending march 31, 2011 as compared with the twelve-month period before that.

I believe the drop is related to all the new jobs about which I’ve been reporting to you Bankruptcy in Indiana readers.  Even more important, the number of “terminations”, which means people emerging from bankruptcy increased 2 1/2%.

Needless to say, job loss or job gain is hardly the only factor in bankruptcy in Indiana. I’m still seeing clients over-burdened with student loan debt and those who are unable to pay medical bills, and many need payday loan debt help.

One University of Illinois law professor believes Americans in general are far from out of the woods when it comes to filing individual bankruptcy – in Indiana or any other state.  As consumer credit has eased, he observes, “people are able to pay for daily necessities – rent, utilities, medical expenses, groceries – with a credit card or through a payday loan.  Thus consumers can use more borrowing to stave off the day of financial reckoning that much longer.”
 

Readers of both genders have been commenting on these Bankruptcy in Indiana articles..  But the fact is, the majority of clients who seek the help of the debt consolidation lawyers in the Zuckerberg bankruptcy law offices are female. That’s due to no special effort on our part to attract women, but to hard statistics:  In each recent year, more than one million women in our country have found themselves in bankruptcy court.

The Journal of Financial Planning, one of the many professional journals I read in order to offer readers and clients the most up-to-date Indiana bankruptcy information, comments on that statistic, titling an entire article “Women Hit Hardest by Life Crises.”  An AARP study agreed: :”After a crisis”, it found, “women struggled more than men.”

Over my more than twenty-five years offering Indiana bankruptcy help, I’ve worked with women from every walk of life – single, married, divorced, homemakers, career women, entrepreneurs, young and old. My experience is congruent with what I hear from the Anderson, Bloomington, Indianapolis, and Columbus bankruptcy lawyers – a large number of our women clients who file personal bankruptcy in Indiana either had already gone through a divorce or were dealing with an upcoming divorce.  Statistics show that fewer than half of single moms receive all the child support they were awarded in divorce court.

The Woodstock Institution researched the bankruptcy situation in Cook County, Illinois, concluding that “women make up a larger share of individual bankruptcy filers in all communities…than men do.”  In fact, they found that “of all bankruptcy cases in Cook Country between 2006 and 2010, 45% were filed by women-headed households, while only 31.8% were filed by male-headed households.

Often I find myself working with a single mom who needs payday loan debt help, student loan debt help, or both.  Or, there might be a female entrepreneur forced into small business bankruptcy in Indiana after her divorce.  Quite often, I’m called upon to help stop foreclosure, so that children won’t need to change school districts.

Whatever the situation, I know that careful Indiana bankruptcy planning results in better outcomes.  And, really, that’s the whole idea behind the help we offer – making sure the outcome is the best it can be in each situation – most especially when there are children!

If I were forced to create a tagline summarizing all the benefits of bankruptcy in Indiana in just a few words, I’d choose “Stop ‘N Start”.

Whether I was addressing you Bankruptcy in Indiana readers or lecturing to professionals around the country on the new bankruptcy laws of Indiana, those two and a half words would serve to recap all the important features and benefits of

• Bankruptcy Chapter 7 in Indiana
   
• Individual bankruptcy using Chapter 13 bankruptcy law in Indiana
   
• Small business bankruptcy in Indiana
   

First, let’s talk about the “stop” capabilities of bankruptcy in Indiana.  While I wish this weren’t the case, what I, along with all the Anderson, Indianapolis, Bloomington, and Columbus bankruptcy lawyers find is that vistors to our offices are harried and under tremendous pressure.  They need those calls from debt collectors stopped!  They need efforts to garnish their wages stopped!  They need foreclosure attempts stopped!  They need lawsuits stopped!
 

That’s precisely what filing bankruptcy does – stop all collection efforts and legal proceedings, turning down all the “noise”, so that individuals have time to think and plan their next moves.  That’s why the automatic stay feature of bankruptcy is such a good thing. 

The reason I say I wish it weren’t so is that I wish clients facing financial troubles would come in earlier before all the pressures have mounted.

So, as debt consolidation lawyers offering Indiana bankruptcy help, what can my colleagues in the Zuckerberg bankruptcy law offices do on the “start” side? We: 
 

• Help you decide whether there are options still open besides personal bankruptcy in Indiana
   
• Help determine which form of bankruptcy applies to your situation
   
• Help you negotiate a mortgage modification in order to help stop foreclosure
   
• Help you go through the debt counseling process
   
• Help you create a new budget plan
   
• Help you gather and organize all the information for the  paperwork you’ll need to submit

You see, after more than 25 years practicing Indiana bankruptcy law, helping tens of thousands of individuals with everything from student loan debt help to payday loan debt help, I know that the “Start” button is far, far more important that the “Stop” button.  In other words, emerging from bankruptcy is really your chance for a fresh financial start.

No one really gets a total “do over” in life, but bankruptcy in Indiana gives honest debtors a chance to start moving forward.  And for me, over all the years, that fresh start has been what my work is all about!

You wouldn’t suppose the words “minor” and “bankruptcy” would appear very often in the same sentence.  But, according to many of the good bankruptcy attorneys in Indiana who work in the Zuckerberg bankruptcy law offices, they do.

And, while I’ve not found very often that the debtor is a legal minor during my 25 years as a debt consolidation lawyer and Indianapolis bankruptcy lawyer, it does happen.

The U.S. Bankruptcy Code defines a debtor as “a person that resides or has a domicile, place of business, or property in the U.S”.  Even so, as one of my Columbus bankruptcy lawyer colleagues points out, a minor (and the age of majority differs from state to state) must use a representative in order to file bankruptcy.  A guardian ad litem appointed by the court, a conservator, or a parent could be that minor’s representative in filing individual bankruptcy in Indiana.

How can it come about, you might wonder, that a minor has incurred so much debt as to need to file personal bankruptcy in Indiana?  I asked all my colleagues to look back over their records to find instances of bankruptcy Chapter 7 in Indiana or (this would be much rarer) of a minor who filed under Chapter 13 bankruptcy law in Indiana.

Here’s what came back:
 

• Anderson lawyers for bankruptcy: Minors were involved in car accidents that injured someone else who’s suing.

• Bloomington bankruptcy attorneys: High school or college students were running businesses that incurred huge liabilities.

• Columbus bankruptcy lawyers: College students applied for and were given a lot of credit cards and failed to keep up with the payments.

• Indianapolis bankruptcy lawyers: Child who was emancipated legally incurred a lot of student loan debt that he or she could not repay.

Despite all these real life examples, I want to remind Bankruptcy in Indiana readers that these are still rare instances among the tens of thousands of people helped at the Mark Zuckerberg law offices.

While it’s relatively rare for minor children to file, it’s very common for children to feel the effects of parents’ bankruptcy in Indiana.

“Nation refuses to Read Headline” is one headline that got the attention of one of my Columbus bankruptcy lawyer colleagues.  In fact, all of the Indiana bankruptcy attorneys who work in the Zuckerberg bankruptcy law offices spent a good part of the day talking about it!  The Washington Post headline began:

                             “4-Year-Old Girl Forced To…”

Millions of Americans, according to a feature writer from The Onion, confirmed they quickly closed their laptops or folded away their newspapers because “there was no possible ending to the headline they could tolerate.” Readers simply could not bear to go about their day with the sort of horrifying news hinted at in that headline.

In my more than twenty-five years as a debt consolidation lawyer offering bankruptcy services in Indiana, I know the psychology.  We humans don’t like to confront ugly realities, particularly when those realities involve us and our finances.  In my profession, I see proof of this every single day.

For every one hundred people, for example, who come to see me to get help stopping foreclosure or student loan debt help or payday loan debt help, I know there are five hundred others who aren’t asking for the help they desperately need. Not only are those folks not coming to my bankruptcy law offices, they’re not coming to anybody’s office to get advice! It’s as if they can’t deal with the rest of the “headline”.

Now, that news about the 4-year-old whose adorable photo was next to the Washington Post headline, awful as it was, had to do with somebody else other than the reader who closed his or her laptop or who folded up his or her newspaper.

But for all those people for whom filing personal bankruptcy in Indiana could be their only ticket to a fresh financial start, it’s their own story they’re refusing to “read”. The pre-bankruptcy symptoms are there, but we refuse to heed the all-too-obvious diagnosis and take steps to obtain debt relief.

When debt overwhelms, don’t just continue with your day, hoping the problems will disappear. At the Zuckerberg bankruptcy law offices, we aim to help you continue with your LIFE!

With all the effort to help stop foreclosure coming out of the four Zuckerberg bankruptcy law offices, I could really relate to the paragraph I read in the New York Times the other day:

“While the entire process of seeking a mortgage modification is complicated and time- consuming, few elements are as maddening as the inability to get through to a representative…’I just keep getting passed from one person to another,’ complained one homeowner. ‘Nobody is willing to talk to me.’”

Well, as debt consolidation lawyers with more than twenty-five years’ experience, my Indiana bankruptcy lawyer colleagues and I are not only willing to talk to you, we’re willing to help you talk to your bank or mortgage servicing company!

Unfortunately, as New York Times reporter Nelson Schwartz observes, there is “doubt whether a settlement will eliminate mortgage ills” (referring to new government standards for how mortgage companies deal with consumers). From my vantage point as a lawyer for bankruptcy in Indiana, there’s good reason to doubt.

Using Chapter 13 bankruptcy law, many homeowners can prevent foreclosure.  But the longer they wait to take action, hoping against hope for a mortgage modification from their lender, the narrower a range of choices they have. As one of my Columbus bankruptcy lawyers pointed out, the late fees and penalties that pile up during the wait make it difficult to “cure” the arrearage on mortgage payments through a Chapter 13 debt repayment plan.

Time is of the essence as we work to help stop foreclosure.  And, when medical debts pile up along with late mortgage payments, even those with good jobs may find themselves in need of payday loan debt help or student loan debt help.

So, even as “government officials prepare to unveil new standards for how banks treat millions of Americans facing foreclosure,” this Indianapolis lawyer for bankruptcy has plenty of doubts remaining about how much help those standards will prove to be.

“The promise of a single point of contact has emerged as a crucial element in the settlement,” explains the New York Times article.  Perhaps, I might suggest, the best guarantee of a “single point of contact” might be attorney Mark Zuckerberg!

It’s bad enough for anyone when family medical bills are spiraling out of control while they can’t work or can’t find a job, and they’re trying desperately to help stop foreclosure on their home. .   But what really makes me indignant is when that happens to veterans who deserve better after having served our country.  And, when it’s senior citizens who are the veterans showing up at the Zuckerberg bankruptcy law offices, it’s an even sadder situation.

That’s why I, a debt consolidation lawyer offering bankruptcy services in Indiana, want to remind readers of one very important benefit that not every veteran knows about. The program I’m highlighting today in Bankruptcy in Indiana is called Aid and Attendance Pension Benefit, and, as one of my Columbus bankruptcy lawyer colleagues reminded me, goes all the way back to 1952, when Congress created the Department of Veteran Affairs.

Why, you may ask, does it fall to a lawyer for bankruptcy in Indiana like me (and to elder law attorneys and financial planners) to spread the word that these benefits are available to veterans and to their surviving spouses?  Why isn’t the VA telling people about them?

Well, as someone who makes a tremendous effort to spread Indiana bankruptcy information, I was just plain shocked to learn the answer to that question: Fact is, the VA has a “non-information” policy.  Even though the VA must set aside funds every year, they are under no obligation to inform potential recipients that they qualify for benefits!

So here I am, dealing with veterans needing payday loan debt help and sometimes student loan debt help, desperately in need of more income, and I learn that, nationally, $22 BILLION a year in veterans’ pension money goes unspent because many vets are complete unaware the program exists!

That’s just one more big reason I hope that Hoosiers (and disabled or senior veterans in particular) will consult with an Indiana bankruptcy attorney at the very first signs of financial difficulty, and not wait until things have gotten so bad they can’t stand it any more!

When I’m helping clients prepare to file either bankruptcy Chapter 7 in Indiana, or to file using Chapter 13 bankruptcy law, a good number of the decisions I discuss with them center around income. And that’s precisely where the VA Regular Aid and Attendance pension could play such an important role.  Here are some general features of the program:
 

• It’s meant for veterans (or their surviving spouses) who need another person in their home to help them with activities of daily living, such as help with eating, bathing, dressing, handling financial affairs, taking medications, etc.. The program also covers blind people.
  It’s easy to see how such a pension might help veterans who file Chapter 13 bankruptcy to keep up with their 3-5 year debt repayment plans and successfully emerge from bankruptcy.
   
• The veteran or spouse is in an assisted living facility or nursing home.
   
• The benefit is a monthly pension to help with non-service-related disabilities (in other words, they don’t have to have sustained the damage in the course of serving in the military).
  It’s easy to see how having this kind of income can save homes and help stop foreclosure!
   
• The veteran can have served in World War I or II, the Korean War, the Viet Nam war, or in the Persian Gulf war.
   
• In 2012, the benefit can be as high as $1703 per month (tax-free) per veteran (as much as $2019 for a married veteran).

Anyone can see how these monthly pension amounts could make an enormous difference to veterans struggling with debt.  Fortunately, the good bankruptcy attorneys in Indiana have no “non-information” policy!

As you might imagine, a debt consolidation lawyer like me who also offers Indiana bankruptcy help has seen both the good and the bad side of credit and loans.

Today, I thought I’d share with my Bankruptcy in Indiana readers my thoughts about four types of credit.  #1, #2, and #3 can all have a place in your budget, and all three are probably tools you used responsibly before things began going wrong.

#1   Non-installment credit. This is the kind of credit available in some stores, especially the kind you visit frequently, and in country clubs.  Several of the attorneys who work in the Zuckerberg bankruptcy law offices, for example, have lunch with clients or friends at their club, signing a receipt each time, then getting one bill at the end of the month for all their purchases during the past month.

#2   Installment credit.  This is the sort of loan you’d used to buy, say, new furniture or new appliances.  As both a consumer and as an Indiana attorney for bankruptcy, I've seen lots of people taking advantage of no-payments-for-six-months type offers.  Then, if you pay the entire amount before the due date, there’s no interest charged.

#3   Revolving credit. Most credit cards use revolving credit. You’re given a limit, and you can use the credit to buy anything you like at any point in time up to that limit.  You have to make periodic payments, and with each one of those, you’re replacing that credit.

#4 Payday loans.  People who come to our offices needing payday loan debt help from an Indiana bankruptcy lawyer are usually in the worst kind of trouble.  On the surface of things, payday lending sounds like a great idea – you borrow just enough cash to tide you over until your next paycheck.  The way payday loans work is, you write a personal check payable to your lender for the amount they’re advancing you plus a fee. But the reason my  colleagues the Anderson, Bloomington, Indianapolis, and Columbus bankruptcy lawyers and I so strongly caution against payday loans is that the extensions tend to be absolutely disastrous for borrowers, with annualized rates on some payday loans going as high as 400%!

Don’t for a moment assume that, after 25 years helping tens of thousands of residents file personal bankruptcy in Indiana, that we oppose all borrowing. Exactly the opposite is the case.  Credit and loans have an important place in your budget.  In fact, one important aspect of emerging from individual bankruptcy in Indiana (and I mean either bankruptcy Chapter 7 or filing under Chapter 13 bankruptcy law in Indiana) is to re-establish credit.

No, it’s not #1, #2, or #3 type credit I’m worried about – it’s #4. You’ve tried your best to handle credit responsibly, but your financial pressures have been mounting. You think perhaps a payday loan might be a convenient way “hang in there until things turn around” – please don’t. 

I offer help to stop foreclosure, student loan debt help, and help filing bankruptcy in Indiana.  But when it comes to payday loan debt help I often say – Watch out for payday lenders. They’re the ones getting paid and you’re the one going into deeper trouble! 
 

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!