Bankruptcy in Indiana is a legal process through which some of the debts of an individual or a business are absolved (excused). You should not view bankruptcy as an opportunity to eliminate your debts just because you don't feel like paying them - it can be a long and difficult procedure. Bankruptcy is designed to be a last resort to prevent complete financial ruin, while allowing creditors to collect at least some of their debts in an orderly fashion. Filing for bankruptcy can have major negative effects on one's credit score, which will make it more difficult to get loans in the future.
Accordingly, if you are considering bankruptcy as an option, you need to thoroughly examine the costs and benefits. A good Indiana bankruptcy lawyer can advise you as to the pros and cons of bankruptcy, and give his or her expert opinion about whether or not bankruptcy is a good option, based on the facts of your particular case.
Types of Bankruptcy in Indiana
Bankruptcy is governed by federal law, so the procedures in filing for bankruptcy in Indiana will be the same as everywhere else in the United States. There are 2 basic forms of bankruptcy that consumers typically use: Chapter 7, and Chapter 13, owing their names to where they are found in the U.S. Bankruptcy Code. Additionally, there is a form of bankruptcy usually used by businesses called Chapter 11. Chapter 11 is available to individuals, but it is rarely the best option for them.
Chapter 7 bankruptcy in Indiana is sometimes called "liquidation" because it involves the forced sale of some (though certainly not all) of the debtor's assets. The bankruptcy court will appoint a trustee to oversee the appraisal and sale of some of the debtor's property, and the proceeds from the sale will go to the creditors, in their order of priority. Certain forms of property are exempt, and do not need to be sold, including houses and insurance policies. Once the property is sold, and the proceeds given to the creditors, the rest of the debt is excused. Under Chapter 13 bankruptcy, debt is usually not excused; instead, it is reorganized. The court will craft a long-term payment plan that allows the debtor to pay off his or her debts in single payments, over time. This usually gives the debtor some breathing room that would not exist if all of his or her debts became due and payable at once.
Chapter 11 bankruptcy, like Chapter 13, involves reorganization of debt. However, it is almost always used by businesses, and not individuals. After filing for Chapter 11, the debtor has to come up with a repayment plan. The plan must then be approved by a majority vote of participating creditors.
How Can a Indiana Bankruptcy Lawyer Help?
Filing for bankruptcy is a major decision. While it can be beneficial, it's virtually guaranteed that there will be some negative consequences, such as damage to one's credit. Of course, with the advice of an Indiana bankruptcy lawyer, it's possible that you will find the benefits to outweigh the costs, but only a bankruptcy lawyer can help you make that decision.
Interesting Facts About Indiana
Indiana is situated in the Midwestern region of the U.S., near the Great Lakes. Indiana is noted for its highly developed sports teams, with representation in the NFL, NBA, and automobile racing. Its economy is largely supported by manufacturing, with the Calumet district being the largest steel producing region in the U.S.
Indiana's capital is the city of Indianapolis, which is the second largest state capital in the nation. The capitol building, Indiana Statehouse, is located there. The statehouse is home to the Indiana Supreme Court, the governor's office, and the state's legislature, the Indiana General Assembly. In the early days of Indiana's statehood, the General Assembly passed a series of laws encouraging industrial growth and protecting the rights of workers. These laws helped to secure Indiana's place as one of the nation's top industrial producers.
Indiana was one of the first states to adopt the "exclusionary rule", which prevents illegally obtained evidence from being used in court. The rule was first established in Callendar v. State, a 1917 case. In addition to the Supreme Court of Indiana, there are many other levels of courts, including the Superior Courts, Circuit Courts, and City and Town Courts.
Attorneys in Indiana work together with the judiciary to provide legal relief for citizens of the state. Lawyers in Indiana typically file cases at the Superior Court or Circuit Court level, depending on the type of claim involved. Indiana lawyers are frequently involved in protecting the rights and interests of Indiana residents.