While we have practiced bankruptcy law for over twenty five (25) years, the present economy has ensured that we are now helping a greater number of clients with relief through Bankruptcy. Although you may have heard differently, it is not difficult or expensive to file for relief under the Bankruptcy Code. If you need assistance with your current financial difficulties, please contact us for an appointment and a free Bankruptcy information package.

Under the 2005 Bankruptcy Act, your income and expenses will be analyzed to determine if you qualify to file a Chapter 7 or if you must file Chapter 13. To apply the means test, the courts will look at your average income for the 6 months prior to filing and compare it to the median Indiana income. If the income is below the median, then you may choose Chapter 7. If your income exceeds the median, the remaining parts of the means test will be applied to determine if you can file Chapter 7 or if you must file Chapter 13. You will likely still be able to file a Chapter 7 bankruptcy if you are unable to pay at least $6,000 over the next five years ($100 per month) to your unsecured creditors after your expenses. However, if you can pay at least $10,000 over five years ($166.67 per month or more) your Chapter 7 may be denied.

To begin the bankruptcy process you must itemize your current income sources; major financial transactions for the last two years; monthly living expenses; debts (secured and unsecured); and property (all assets and possessions, not just real estate). You should also collect your tax returns for the last two years, deeds to any real estate you own, your car(s) titles, and the documents for any loans you may have. Once you have gathered this information, with the help of an attorney, you should then determine which property you believe is exempt from seizure based on the Indiana exemptions. To actually file, your attorney will need to file a petition and several other forms at your Indiana district bankruptcy court. These forms, collectively are referred to as the schedules and ask you to describe your current financial status and recent financial transactions (typically within the last two years). If your creditors or the judge feel or find out that you have not been entirely forthcoming in your bankruptcy filing, it could jeopardize the outcome of your petition.

(Text copied from www.indianabankruptcy.com)