Apr 21, 2014

Posted by Shanell Calloway in Uncategorized | Comments Off on Establishing Your Options Through A Bankruptcy Attorney In Indianapolis, IN

Establishing Your Options Through A Bankruptcy Attorney In Indianapolis, IN

The state of Indiana requires all consumers who wish to file for bankruptcy to enroll into a state-approved credit-counseling program. Any failure to comply with this requirement will prevent him or her from filing a claim based on the laws initiated in the 2005 Bankruptcy Act. The objective of the program is to establish whether or not options outside of bankruptcy are more beneficial for the consumer. To begin the claim, the consumer should contact a Bankruptcy Attorney in Indianapolis IN and provide documentation for their debts and income.

Why Is The Means Test Necessary?

Throughout the country, the means test is initiated. It is to establish if the consumer is financially capable of settling debt through a payment plan or liquidation. If he or she does not have the means to make timely payments, then a reorganization plan is not feasible. This will place the consumer in a new position in which he or she cannot honor their obligations. The value of the property and assets should reflect an adequate amount to pay off the consumer’s debts.

New Changes To Bankruptcy Laws

Chapter 13 changes require the court to establish allowances for the consumer’s household expenses. These allowances are calculated by the consumer’s income for the previous six months. All other disposable income is paid into the reorganization plan.

The trustee is allowed to choose the properties and assets that are sold in Chapter 7 Bankruptcy in Indianapolis, IN. The consumer can make suggestions and make attempts to keep their primary residence; however, it is up to the judge’s discretion whether or not these efforts are fruitful. Consumers must establish eligibility based on residency requirements. In Indiana, she or he must live in the state for at least ninety days before completing a claim.

Consumers in Indiana are further required to complete a second credit-counseling program after their case concludes. This is to provide them with finance management concepts. Failure to comply with this requirement will prevent the consumer from acquiring a discharge of their debts. To complete a claim to file for either chapter, consumers should contact a Bankruptcy Attorney in Indianapolis IN to represent them.

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