Bankruptcy / Chapter 7 and Chapter 13

Are you falling behind on your bills or having trouble making ends meet every month? Despite paying your credit cards each month do your balances never go down? Are you constantly getting phone calls and letters from debt collectors? If you’re having difficulty getting control of your finances, bankruptcy may help you.

Bankruptcy is the process of eliminating or restructuring all or some of your debts to allow you the ability to regain control of your financial situation and get back on your feet. There are two main types of consumer (individual) bankruptcy protection available to you.

Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is the process of discharging, or wiping away, certain unsecured debts, such as credit cards and medical bills, as well as any secured debts, such as homes or cars, that you cannot afford to keep. Generally speaking, debts such as taxes, child-support related bills and student loans cannot be discharged, however there are some exceptions to that rule. Rest assured that so long as you can afford your current mortgage and/or car payments that you can keep your house & car(s) despite filing a bankruptcy.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is the restructuring of debts, so that a single payment is made every month over a 3 to 5 year time period. This is useful when you are behind on any bills, such as your home mortgage or car loan that you wish to keep but cannot afford to catch up in one huge payment. Chapter 13 also allows you to pay back taxes over time without incurring penalties & usually without additional interest. It also allows you to pay credit cards & other unsecured debts at 0% interest (which can be a huge savings to you). A chapter 13 bankruptcy generally lowers your monthly payment, based on your income and living expenses to an amount that you can afford to pay, allowing your creditors to receive all or a portion of their money over time.

What Happens When You File

After we first meet with you to gather your financial information, it generally takes 2-4 weeks to file a bankruptcy with the Court. After the case is filed, those annoying phone calls and letters will stop. Your creditors can no longer contact you directly and must communicate only with our office or the Bankruptcy Court. Roughly 30 days after you file, you will attend one simple hearing that lasts about 10-15 minutes where you will be asked some basic questions about your financial situation. However, we’ll be with you the whole time, so there is nothing to be concerned about.

If you file a Chapter 7, your bankruptcy will close and be discharged approximately 3 1/2 months after the initial filing date. If you filed a Chapter 13, you will make your monthly payments each month until the end of the payment plan (3 to 5 years), at which point your bankruptcy will also be “discharged” or closed by the Court and you can get on with the rest of your life.

What You Need for your Consultation

Ready to schedule an appointment? Call our office today at 765.742.4529 or contact us to set up a time to sit down with us and see what we can do for you. When you set an appointment, you will need to bring the following information with you:

• Your 2 most recent paycheck stubs
• Your 2 previous years’ tax returns & W-2 Forms
• The most recent monthly statement or payment book (including balance & account #) for each bill and/or loan you owe (including any debts that you wish to keep such as mortgage or car loans)
• Any lawsuit papers that you have been served
• Your Driver’s License and Social Security card
• All collection notices/letters you have received

Fill out our contact form to speak to our offices.

Coming Presentations

December 17, 2008

Rod Forbes will be speaking at a seminar entitled "EFFECTIVELY USING MEDICAL EVIDENCE IN COURT" presented by the National Business Institute (NBI).

Firm Recognition

CONGRATULATIONS to Jay Seeger, who was named an Indiana Super Lawyer in the area of Elder Law for the third consecutive year.  Indiana Super Lawyers are selected by Law & Politics Media based upon a survey of 14,000 Indiana attorneys. Only 5% of all Indiana lawyers were chosen as Super Lawyers.