Consumer Bankruptcy
Mounting bills can put stress on any family's budget, but when there isn't enough income coming in to pay off those debts, late bill payments are inevitable. If you find yourself facing insurmountable debt and bankruptcy appears to be your only option, contact an experienced bankruptcy attorney to discuss your options.
20 Years of Indiana Bankruptcy Experience
Working with Indiana clients for more than two decades, our attorney, Portia Douglas, provides clear guidance, dependable counsel and effective representation for families considering the benefits and options afforded under bankruptcy. Bankruptcy is all we do. Portia Douglas uses her Notre Dame Law School education to represent you. She does not delegate the decisions in your case to non-lawyers/ paralegals.
Our lawyer will help you evaluate your current situation, and consider how a Chapter 7 or Chapter 13 filing might help lay the foundation for a better financial tomorrow. We review your financial health, talk about what kinds of debt you can restructure or discharge and take the necessary steps to help you protect your most valuable assets and investments, such as your home, your car and your retirement.
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With a focus on counseling and educating clients, we work for and with you to take back control of your finances. If you are burdened by medical bills, credit card debt, an unwieldy home mortgage or constant creditor harassment, call us today at 317-204-2292.
Contact the Indianapolis office of Portia Douglas for bankruptcy representation that you can rely on. We emphasize personal service and the value of building a plan to maximize the benefits of your bankruptcy filing.
Consumer Bankruptcy
When an individual falls desperately behind in his or her debt payments, one option may be to declare bankruptcy, a legal proceeding in a federal bankruptcy court that relieves the debtor of some or all of his or her debts. While bankruptcy may not be the best option for everyone, in the right situations, it can provide people with a fresh start. The experienced lawyers at The Bankruptcy Legal Services of Portia Douglas in Indianapolis, Indiana can advise you as to whether bankruptcy may be the right move for you.
Bankruptcy Choices for Consumers
Consumers, like businesses, have options in terms of which type of bankruptcy to pursue. These options are set forth in separate chapters of the federal bankruptcy law - called the Bankruptcy Code - and they are commonly referred to by their chapter numbers. Consumers most commonly file either under Chapter 7 or Chapter 13, with a very few filed under Chapter 11.
The 2005 changes to the federal bankruptcy laws created a new requirement that debtors receive credit counseling from an approved agency in the 180 days before filing for bankruptcy under any chapter, with some exceptions.
Most consumer bankruptcy cases are initiated voluntarily by consumers, but under certain circumstances, can arise involuntarily when creditors force debtors into bankruptcy.
Chapter 7
Chapter 7 bankruptcies, called "liquidation bankruptcies," are the most common type chosen by consumers. The Chapter 7 proceedings begin with the debtor's filing of a petition with the bankruptcy court, which triggers the automatic stay - bankruptcy terminology for the cessation of all debt-collection activity. The court appoints a trustee who oversees the case and liquidates the debtor's nonexempt assets to pay off eligible debts to the extent possible.
Not all of the debtor's assets will be sold in a Chapter 7 bankruptcy case because the law specifies that certain property is exempt from liquidation. For many typical consumers, all of their property is exempt or already subject to valid liens, so eligible debts will be discharged without the loss of any property. This situation is commonly called a no-asset case.
Once the trustee has collected any nonexempt assets and paid creditors from the proceeds, any remaining unpaid debts are discharged, meaning that they no longer exist and the debtor has no further obligation to pay them. Some debts, however, are nondischargeable and remain valid, such as taxes, domestic support obligations and damages resulting from a debtor's willful or malicious acts.
Chapter 13
Alternatively, a consumer may choose Chapter 13 if he or she has stable income, believes the crisis is temporary and wants to repay at least some debt. The debtor must have less than $336,900 in unsecured debt and $1,010,650 in secured debt to be eligible for Chapter 13. A Chapter 13 proceeding, called a wage-earner plan, is also initiated by filing a petition and also stops creditors from trying to collect debts. The debtor proposes a debt repayment plan, to which creditors may object. If the court approves the plan, however, the creditors can take no action outside the plan's scope to collect their debts. Once the plan is completed, the debtor is entitled to a discharge, which releases him or her from all debts dealt with by the plan.
A Comparison
Chapter 13 has certain advantages over Chapter 7 in consumer bankruptcies. For example, Chapter 13 allows the debtor to discharge more types of debts. Although many average consumers have only assets exempt from the liquidation requirement under Chapter 7, some may have assets eligible to be sold. For these consumers, Chapter 13 may allow them to retain more of their assets. A consumer's choice between Chapter 7 and Chapter 13 is not necessarily permanent; once proceedings have begun, a case may be converted to a different chapter under certain circumstances.
Conclusion
Sometimes consumers find themselves in such dire financial situations that filing for bankruptcy is their best option. Any decision to file for bankruptcy should be made carefully after consulting an experienced bankruptcy attorney. Contact The Bankruptcy Legal Services of Portia Douglas in Indianapolis, Indiana to learn more about your options to protect your financial well-being.
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