Bankruptcy in Fort Wayne, IN
Are you contemplating bankruptcy or hiring a bankruptcy attorney in Fort Wayne, Indiana? Are you tired of creditors calling for payments you can’t make? Maybe looking for a way to get out of debt and have you exhausted all other options? Then bankruptcy might be the solution you seek. It is a legal option that can erase a portion or all of your debts.
Types of Bankruptcy In Fort Wayne, Indiana
Bankruptcy is a legal process that helps individuals and businesses get a fresh financial start. It eliminates a portion of or all of their debts or financial liabilities. In Fort Wayne, IN to be approved, individuals must prove they have a hardship that prevents them from staying current on their financial obligations. Keep in mind that not all debts qualify. Some liabilities, such as child support arrears, delinquent taxes, alimony, and student loans generally do not qualify for discharge. Consumers who find themselves falling behind in debt can file either Chapter 7, 11 or 13. To determine which option is right for you, you’ll need to assess your goals, assets, and income. You should also consider working with an experienced bankruptcy attorney.
Fort Wayne bankruptcies are under the jurisdiction of the U.S. Bankruptcy Court for the Northern District of Indiana. There is a court location in Fort Wayne, as well as in South Bend, Hammond, and Lafayette.
Chapter 7 Bankruptcy
Many people find Chapter 7 to be the right solution for their circumstances because it provides them with the opportunity to start over financially. However, before filing for Chapter 7 bankruptcy, you should thoroughly assess your income and ability to repay what you owe. You should also speak with a bankruptcy attorney in Fort Wayne who can help you to decide if a liquidation plan is right for you.
Typically, individuals approved for Chapter 7 lack stable income or have experienced a change in circumstances that has resulted in an inability to manage their debts. Though Chapter 7 erases debts, the tradeoff is you may have to give up certain possessions, such as your home, car, or some other assets. However, once you file your petition, an automatic stay goes into effect that requires all collection activity against you like foreclosures and garnishments, to stop temporarily. However, the automatic stay does not prevent all collection attempts. For example, if you owe child support or restitution for a criminal case, you are still liable for those payments.
Before filing a Chapter 7 bankruptcy in Fort Wayne, you must pass a Means Test. In short, your family’s income must be lower than the median income of Indiana families of the same size. When you file a bankruptcy petition in Fort Wayne, an automatic stay prevents your creditors from continuing their attempts to collect your debt. However, under Local Bankruptcy Rules, a creditor can request an exemption from the court to continue collecting the debt.
Bankruptcy law also requires that you undergo credit counseling before you file. Fortunately, this can typically be completed online. The Department of Justice maintains a list of approved providers for the Northern District of Indiana.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is more complex than other types of bankruptcy. It is often used by businesses and certain types of people. It allows petitioners to restructure their debts with a reorganization plan, so they are easier to manage over a determined length of time, usually four to 18 months. The main benefit of Chapter 11 bankruptcy is that it does not require petitioners to sell off or liquidate their assets to pay what they owe. It does allow debtors to negotiate with their creditors a reorganization plan that enables them to stay current on their debts moving forward.
Filing for Chapter 13 bankruptcy in Fort Wayne requires a combination of federal and local forms. Some of the filing requirements include:
- File a bankruptcy petition and pay $1,738 fee
- Certificate of Credit Counseling and Debt Repayment Plan
- Statement of income
- List of Creditors
- Schedule of assets and liabilities
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy, often called a wage earner’s plan, allows for debt restructuring rather than liquidation. In , , after filing, the court appoints a trustee to review your financial situation, including liabilities, assets, and income. This type of bankruptcy establishes a three to five-year repayment plan, offering flexibility based on your income stability and the property you wish to retain, while potentially discharging some or most of your debts.
The filing requirements for a Chapter 13 bankruptcy in Fort Wayne include:
- File a petition and pay the $313 fee
- Certificate of Credit Counseling
- Statement of income, assets, and liabilities
- Statement of Financial Affairs
- Chapter 13 repayment plan
The Bankruptcy Process In Fort Wayne, Indiana
There is never an ideal time to declare bankruptcy. However, if you are unable to pay off what you owe within five years, filing for bankruptcy can help you to lessen the negative impact on your situation and help you get back on track.
In Fort Wayne to begin the filing process, gather all of your financial records, including monthly expenses, debts, assets, and annual income. This information is crucial to give the courts an accurate picture of your circumstances. Failure to provide all necessary information can result in your petition being denied.
Unlike some states, Indiana does not give you a choice between the federal and state exemptions. Fort Wayne residents must use the exemptions provided by Indiana code, which include:
- Up to $19,300 of equity in your residence
- Life insurance, pension, and retirement benefits
- Unemployment compensation and up to 75% of earned wages
- Wildcard exemption for personal property up to $10,250
Unfortunately, Indiana does not have a specific motor vehicle exemption. However, many people keep their cars using the wildcard exemption, which has a higher limit than in most states.
At least six months before you file for bankruptcy, eliminate unnecessary spending. Do not run up the balances on your credit accounts. You’ll also need to complete an approved credit counseling course, usually online or over the phone. Credit counseling is necessary to help you learn financial literacy and help you learn better financial habits. Once you complete the course, you’ll receive a certificate of completion to include in your filing. If you don’t have the certificate of completion from the credit counseling course that you took, the courts will reject your bankruptcy petition.
Work With an Experienced Fort Wayne, Indiana Lawyer
Hiring a local bankruptcy lawyer in Fort Wayne during this process can help reduce the costly risks of self-representation in court. An experienced bankruptcy lawyer understands state and federal bankruptcy laws. He or she can help you understand which laws apply to your case, especially which debts that can be discharged or can’t be discharged. An experienced Indiana attorney can also offer you guidance to improve the outcome of your case.
Keep in mind that there are debt management alternatives and financial resources that may benefit you more than bankruptcy, such as debt consolidation. Though bankruptcy is an attractive solution, it is best as a last resort. Do you need immediate help? Then one of our experienced lawyers in Fort Wayne can guide you through the entire bankruptcy process. We can even help you connect with an attorney across Indiana state lines.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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