Absolutely. The new bankruptcy law hasn't turned out to be nearly as bad as was initially feared. The Bankruptcy Abuse Prevention Consumer Protection Act ("BAPCPA") took effect on October 17, 2005.

Basically, the Bankruptcy Abuse Prevention Consumer Protection Act (“BAPCPA”) requires more paperwork. BAPCPA added a means test and placed time limits on the homestead exemption. BAPCPA also lengthened the residency requirements and time between discharges. Debtors are also now required to attend credit counseling.

Normally, we can prepare and file a bankruptcy in about a week. However, many of our clients do not completely answer our questionnaire and fail to provide us with the requested documents, so their cases take a bit longer. If you have a pressing deadline (i.e. foreclosure sale, wage garnishment or court hearing) which necessitates your petition being filed immediately, we can accommodate your request and have your petition prepared in a day. However, there is an additional fee for rush jobs.

No problem. We represent individuals throughout the state of Indiana. We will prepare your petition from our office here in Indianapolis, then personally meet with you before your 341 meeting.

No one wants to file bankruptcy and we don't push people into filing. It's a difficult and important decision, but if you decide that bankruptcy is right for you, we will help you get through it as smoothly as possible. If you are experiencing one or more of the following it's probably time you file bankruptcy:

• You are so far in debt that you will never be able to dig yourself out
• Creditors are constantly calling you demanding payments
• Creditors are calling or showing up at work
• You receive piles of bills in the mail everyday
• You are being sued for collections
• Your wages are about to be garnished
• Your home is about to be foreclosed
• Your vehicle is going to be repossessed

No. Certain debts are not dischargeable, such as child support, government-funded or guaranteed student loans, debts arising from death or personal injury caused while intoxicated or under the influence of drugs, and debts for restitution or a criminal fine. For more information on how these exceptions apply to your situation, feel free to contact us.

If you have less than $7,500 in dischargeable debt, it’s probably not worth filing. However, there are other reasons to file, like taking advantage of the automatic stay (injunction on collection actvities) to prevent or delay a foreclosure or repossession.

No problem, but we will still have to list the debt on your petition for disclosure purposes. Just because a debt is discharged does not mean you can't pay all or part of it voluntarily in the future.

Yes. You may voluntarily pay any of your debts after they have been discharged, but your creditors can't request you to do so.

When you file bankruptcy, an "Automatic Stay" is placed on all collection activities against you. This injunction prohibits creditors from contacting you by mail, phone, in person or otherwise. The Automatic Stay also stops all pending wage garnishments, foreclosures and civil law suits agaisnt you. In approximately five weeks, a "Meeting of Creditors" is held before a Trustee, which you are required to attend. The name of the hearing is quite misleading because creditors rarely, if ever attend. The meeting itself typically lasts only 5 to 10 minutes, unless you forgot to list assets on your petition or the Trustee suspects you are committing bankruptcy fraud.

Not exactly. You are required to attend a "Meeting of Creditors" before a Trustee. The name of the hearing is quite misleading because creditors rarely, if ever, attend. The meeting itself is usually held in a large conference room instead of a formal courtroom. It is somewhat informal and typically lasts only 5 to 10 minutes, unless you failed to list assets on your petition or the Trustee suspects you are committing bankruptcy fraud. No judge will be present, just the Trustee and a room full of other debtors and attorneys. You are required to bring two forms of identification to the hearing--a picture ID (Driver's license, Passport, or ID Card) and proof of your social security number (Social Security Card or other identification containing your social security number). There is nothing to worry about, we thoroughly prepare all of our bankruptcy clients before attending the meetings. We've prepared a list of standard questions that the Trustee asks so you will know what to expect ahead of time. After attending the meeting, most of our clients say something along the lines of, “That was easy”, “That was just like you said it would be” or “The Trustee asked the exact same questions you told me he would.”

You can file a Chapter 7 Bankruptcy once every 8 years. See 11 U.S.C. § 727(a)(8) You can file a Chapter 13 once every 2 years, and 4 years between a Chapter 7 and a Chapter 13.

A Chapter 7 takes approximately 4 to 5 months, until you receive your discharge order.  In most instances, your case is essentially over after the “Meeting of Creditors” and you simply wait 60 to 90 days to receive your discharge order. A Chapter 13 is not over until the plan of reorganization is completed, typically 3 to 5 years.

You don't have to bring anything to your free initial consultation. However, it would be helpful if you knew the amounts and type of your debt, e.g. credit card debt $50k, court judgment $19k, taxes $22k, car loan $10k, etc. If you are sure you are going to file and would like to expedite the process, complete the Bankruptcy Questionnaire with as much detail as possible.

Yes. You are required to attend two (2) credit counseling courses--a Pre-Petition Credit Counseling course and a Pre-Discharge Financial Management course. The Pre-Petition Credit Counseling course includes an evaluation of your personal financial situation, a discussion of alternatives to bankruptcy, and a personal budget plan. The course must be taken within 6 months of filing bankruptcy. Upon completion of the course you will be given a certificate. The course costs around $40 and lasts about 60 to 90 minutes. The Pre-Discharge Financial Management course takes a little longer and covers information on developing a budget, managing money, using credit wisely, and other resources. It typically costs around $50. Both courses may be taken in person, on the phone, or online. If you are married filing jointly, each spouse must take the courses separately. To take your credit counseling courses you can go to CCMS Credit Card Management Services. We recommend taking your courses online because it’s the fastest and cheapest method.

No. The Bankruptcy Code provides for a number of exemptions, like the "Homestead" Exemption, "Retirement Account" Exemption, "Personal Property" Exemption, etc. The majority of people considering bankruptcy don't own anything of value and the property that they do own has little to no equity (fair market value minus the amount you owe). Thus, all of their property is exempt and they do not lose any of their property. You probably have a higher chance of losing your property if you don't file bankruptcy. Creditors will attach your bank accounts, garnish your wages, repossess your vehicles, and foreclose your home. For a list of Indiana's exemptions. See Ind. Code § 34-55-10-2.

No. Retirement funds that are not subject to federal income taxation under the Internal Revenue Code (such as IRAs, 401ks 403bs etc.) are exempt. See Ind. Code § 34-55-10-2(c)(6).

Depends. Indiana exempts debtors' earned income credit portion of their tax refund. See Ind. Code § 34-55-10-2(c)(10) If you are anticipating a large tax refund, you need to speak to a bankruptcy attorney for some advanced planning strategies.

Yes. Indiana Code provides a $8,000 exemption for personal property, which includes automobiles, trucks, boats etc. See Ind. Code § 34-55-10-2(c)(2). If you still owe on your vehicle, you can reaffirm the debt and keep the vehicle as long as you continue to make payments. Another option is to purchase the vehicle from the finance company in one single payment at a significant discount.

In Indiana, the Homestead Exemption for an individual is $15k and $30k for a married couple filing jointly. See Ind. Code § 34-55-10-2(c)(1). Thus, if you were married and owned a $150k home with a $130k mortgage balance, your home would be exempt because the equity in the home is less than the Homestead Exemption ($150k - $130k = $20k which is less than the $30k Homestead Exemption).

No. The bankruptcy statute permits married individuals to file separately. However, they must include some of their non-filing spouse's financial information on the petition for means test calculations and disclosure purposes. Your bankruptcy will have absolutely no effect on your non-filing spouse. For spouses with a large amount of debt in their name only, it's a good option. If the non-filing spouse owes on the debt as well it wouldn't make much sense because the creditor would just go after the non-filing spouse after you file.

No. While bankruptcy is a matter of public record, chances are that no one will know about your bankruptcy except for your creditors, the U.S. Trustee and anyone you tell. The only types of cases that tend to get any media attention are those of major corporations or famous individuals, e.g. Enron, Conseco, O.J. Simpson, etc.

No. You can easily re-build your credit. If you’re thinking about filing bankruptcy, chances are your credit is probably trashed anyway, with late payments, charge-offs, collections, judgments, foreclosures, repossessions and other deficiencies. You are better off taking the hit of a bankruptcy on your credit report than if you continued to struggle to pay your debt, missing payments and continuing to damage your credit. It’s not uncommon to obtain credit scores in the mid to high 600s within 1 to 2 years after filing bankruptcy.

Yes. Lenders like debtors coming out of bankruptcy because they have virtually no debt and they can't file bankruptcy again for statutory period of time. Thus, lenders know they have a higher chance of getting repaid.

A Chapter 7 can stay on your credit report for up to 10 years. However, most credit bureaus only keep it on your credit report for 7 years. So for all intents and purposes, it stays on for 7 years.

Yes. In a Chapter 7, income taxes are dischargeable if they are more than three years old (including all extensions) and were filed on time. Income tax returns filed late are dischargeable if they were filed more than two years before filing bankruptcy. Taxes must be assessed more than 240 days before filing bankruptcy. For taxes that don’t qualify for a Chapter 7 discharge, a Chapter 13 would eliminate the interest and penalties on the non-dischargeable tax, which can be substantial, and allow you to repay the underlying tax interest-free over a three to five year span. Both the three two-year rules are subject to tolling provisions which stop the clock upon the filing of an Offer-in-Compromise (“OIC”) or bankruptcy. The statute of limitations for federal income taxes is ten years. Trust fund penalty taxes are not dischargeable because they are fiduciary taxes, meaning the taxes were collected and held on behalf of third parties (e.g., sales taxes and employee income tax withholdings). Fraudulent tax returns and willful attempts to evade or defeat taxes are not dischargeable as well.

Yes, but you probably won't do it successfully. The bankruptcy forms are lengthy, involve many calculations, are written in legalese and are constantly being updated. There are numerous places to make a mistake and not even realize it. We routinely receive calls from individuals who tried to save money and represent themselves, only to make a mistake and pay us more to fix the error than it would have cost to hire a bankruptcy attorney in the first place. Your best bet is to hire an attorney from a larger metropolitan city that specializes in bankruptcy. The attorneys in smaller towns tend to be general practitioners who only handle an occasional bankruptcy here or there, so they are less familiar with the intricacies of the Bankruptcy Code, forms and court procedures.

Not unless you would like to make a federal penitentiary your new home. It's called bankruptcy fraud and the Trustee's Office takes any attempts to hide or transfer assets very seriously. Besides, the Trustee will simply go back and undue the transaction. Under Indiana's Uniform Fradulent Transfers Act, the Trustee can go back as long as four (4) years.

No. Consumer debts incurred within 90 days before filing, totaling more than $500, and owed to a single creditor for “luxury goods or services”, as well as cash advances within 70 days of filing for more than $750 from a single creditor are presumed to be nondischargeable. See 11 U.S.C. § 523(a)(2)(C)(i) and (ii) Moreover, it’s considered bankruptcy fraud to use your credit card to obtain goods or services if you do not intend on paying it back or if you do not have a reasonable belief that it can be repaid. Credit card companies typically look at the following factors in evaluating whether to challenge a debtor’s bankruptcy petition:

• Increased use immediately before filing
• Substantial use of recently issued card
• Use of credit card for luxury items
• Cash advances up to 12 months prior to filing
• Exceeding the credit card limit
• Use of credit card for a large percentage of living expenses
• Sudden change in buying habits before the charges were made

The bottom line is that the longer the time period between the date you file your bankruptcy petition and the date you last used your credit cards, the less likely a creditor will ever challenge your bankruptcy in court.