Merrillville Chapter 7 Lawyer
Law Office of Rosalind G. Parr & Associates
Merrillville, Indiana Chapter 7 Bankruptcy Basics
Chapter 7 in Merrillville and the state of Indiana, otherwise known as "liquidation" or "straight bankruptcy" is generally the simplest and quickest. It's available to individuals, married couples, corporations and partnerships. A trustee appointed by the court gathers and sells your nonexempt property. The proceeds from the sale pay your creditors. You're able to keep any "exempt" property.
Questions For Your Merrillville, Indiana Attorney
- My Domestic Partner and I want to file for a Chapter 7 Bankruptcy. How do we do it?
- Does any of my property qualify as exempt under Chapter 7?
- How do I prepare for a "341" meeting?
Exempt Property in Merrillville, Indiana
When determining what is considered exempt, many states allow you to use the state's definition of exempt or the federal list of exempt property.
Exempt property could consist of the following:
- Real estate such as a residence
- Trade or professional tools, books
- Unmatured life insurance contract
- Prescription health aids
- Social security, veteran's benefits, disability, illness or unemployment benefits
- Proceeds from a judgment
Beginning October 17, 2005, under the new Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), you now have more time to decide whether to use the state or federal exempt property lists. This was to prevent someone from moving to a different state with more generous exemptions.
Most Merrillville, Indiana chapter 7 cases are "no-asset" cases, which means that you don't have nonexempt property for the trustee to sell. When you file your petition for bankruptcy, you declare whether your case is "asset" or "no-asset." The burden is on the trustee to change the designation.
Eligibility for Chapter 7 in Indiana
If you file, under BAPCPA, you must undergo a "means test" to qualify for Indiana Chapter 7 bankruptcy. This Your income and expenses are examined to see how they compare to the standard for your area as set by the IRS.
For example, if you earn less than the median income for a family of your size in your state, you can file for Chapter 7 bankruptcy. However, if your income from the last six months is greater than the median income, and you can pay at least $6,000 over five years or $100 a month, toward your debt you can't file for Chapter 7. You must file for Chapter 13 instead.
The means testing requires you pay any overdue tax returns within weeks of filing bankruptcy.
Now, you must also pay for credit counseling and budget analysis at your own expense. This will address the means testing calculations for you. These calculators can also be found on the Internet.
Filing Chapter 7 in Merrillville, Indiana
Bankruptcy starts with filing an official petition, schedules and Statement of Financial Affairs in bankruptcy court. You must provide:
- A full list of creditors
- The amount and type of their claim, the source, amount and frequency of your income
- A list of all your property
- A detailed list of monthly living expenses
As soon as you file for bankruptcy, creditors are prevented from trying to collect on your debts through an "automatic stay." The stay preserves your property and gives you a break from being sued.
Creditors must show the bankruptcy judge there is cause to continue with collection action. For instance, by showing the property might deteriorate in value during the bankruptcy period.
If there is nonexempt property, the trustee will control of it. That person will sell the property and pay administration fees and then pay any remaining money to creditors with active and approved claims. These will be paid in a level of priority. Any wages earned after filing, you keep and are beyond the reach of creditors prior to the filing date.
contact us today
merrillville bankruptcy
Law Office of
Rosalind G. Parr & Associates
105 W. 86th Avenue
Merrillville, IN 46410
Phone: (877) 381-0018
OR (219) 756-3316
Website: Northwest Indiana Bankruptcy
Connect: Bankruptcy Lawyer Locator
about
rosalind g. parr
Rosalind Parr is a bankruptcy attorney who has been practicing law for 32 years. She graduated from Purdue University in Lafayette, Indiana in 1972 and received her law degree from DePaul University in Chicago, Illinois in 1977. Ms. Parr served as an assistant City Attorney for the City of Gary, Indiana for nine years and started her own law office in 1986. The largest part of her practice is devoted to assisting individuals and small businesses with debt relief. As a general practictioner, she also practices in other areas of law, such as real estate, probate and family law. She is licensed to practice law in the states of Indiana and Illinois and is available to provide bankruptcy services to clients in northwest Indiana. She has taught paralegal studies at Commonwealth Business School and has served on the boards of Edgewater Systems for Balanced Living and the YWCA of Gary, Indiana.
