Know When and How to File for Bankruptcy in Indiana
For individuals considering filing for bankruptcy in the state of Indiana and struggle to pay their debts, are constantly harassed by creditors, or face foreclosure or repossession, understanding when should you file bankruptcy can be difficult. Bankruptcy is a legal proceeding that allows an individual to receive relief for unresolved debt or a sort of “fresh start” from their current financial situation. Common bankruptcy filings are typically generated by job loss, medical problems and divorce. However, bankruptcy is not the answer to all financial problems, and understanding the qualifications and process of filing for bankruptcy in Indiana is important.
Residents of Indiana in difficult financial situations may find themselves wondering “when should you file bankruptcy?” It’s important to first consider the amount of debt that you owe. Before you file your case, think about the types of debt you have and the goals you want to achieve by filing for bankruptcy. For instance, the average foreclosure sales price for a home in Indiana in $107,487. Filing for bankruptcy is a good way to save your home from experiencing a foreclosure. Remember, bankruptcy will not clear all of your debt such as priority debts, meaning that filing for bankruptcy may not be in your best interest if all you want to do is wipe out debts that can’t be discharged through bankruptcy.
When should you file bankruptcy is also dependent on adequately preparing yourself and gathering the necessary bankruptcy info and documents first. There are two common filings for bankruptcy, chapter 7 and chapter 13 bankruptcy. In the state of Indiana, in order to qualify for Chapter 7 or Chapter 13 bankruptcy, you must show that you received credit counseling from an agency approved by the United States Board of Trustees in Indiana, within a six month period before you file for bankruptcy. Additionally, both Chapter 7 and Chapter 13 bankruptcy have certain eligibility requirements. In order to qualify for Chapter 7 bankruptcy, your income must be low enough to pass the bankruptcy means test. In comparison, eligibility for Chapter 13 bankruptcy is dependent on the amount of your debts, and cannot exceed certain dollar limits. If you fail the means test, you won’t be eligible to file for Chapter 7 bankruptcy, but may still qualify for Chapter 13.
Preparing for, and choosing which form of bankruptcy you will file for can be difficult, so getting help from Indiana bankruptcy lawyers can be very beneficial. A bankruptcy attorney will help you with the process and ensure no mistakes or falsifications in your bankruptcy forms are present. Mistakes and falsifications on bankruptcy forms can constitute fraud or perjury, and bankruptcy fraud is a federal crime in the United States. Good refereneces: koehlerbankruptcy.com