If you’re considering filing bankruptcy in Indiana, you’ll need to understand the types, costs, as well as some helpful advice to finding good attorneys.

Am I Qualified for Bankruptcy?

Qualifying for bankruptcy in Indiana, like in most other states, involves meeting certain eligibility criteria. Bankruptcy is a legal process designed to help individuals and businesses with overwhelming debt get a fresh start. The eligibility criteria vary depending on the type of bankruptcy you want to file, typically Chapter 7 or Chapter 13.

Chapter 7 Bankruptcy:

Chapter 7 bankruptcy, often referred to as “liquidation” bankruptcy, allows eligible individuals to discharge most of their unsecured debts, such as credit card debt and medical bills, by selling non-exempt assets to pay off creditors. Here’s who is qualified to file Chapter 7 bankruptcy in Indiana:

1. Means Test: The primary qualification for Chapter 7 bankruptcy is passing the means test. This test compares your income to the median income in Indiana for a household of your size. If your income is below the median, you are generally eligible to file for Chapter 7 bankruptcy. If your income is above the median, you may still qualify if you can demonstrate that you have insufficient disposable income after paying essential living expenses to fund a Chapter 13 repayment plan.
2. Credit Counseling: Before filing for bankruptcy, you must complete credit counseling from an approved agency. This requirement ensures that you have explored alternatives to bankruptcy.
3. No Recent Discharge: If you’ve received a Chapter 7 discharge in the past eight years, or a Chapter 13 discharge in the past six years, you may not be eligible for another Chapter 7 discharge.
4. No Fraudulent Activity: If you engaged in fraudulent activities, such as hiding assets or providing false information on your bankruptcy documents, you may be disqualified from Chapter 7 bankruptcy.
5. Exempt Property: Understanding Indiana’s bankruptcy exemptions is crucial. Exempt property cannot be sold to pay off creditors and is protected during the bankruptcy process. Common exemptions in Indiana include a homestead exemption for your primary residence, exemptions for a vehicle, personal property, and tools of your trade.
6. Financial Management Course: After filing for Chapter 7 bankruptcy, you are required to complete a financial management course from an approved agency to receive your discharge.

Chapter 13 Bankruptcy:

Chapter 13 bankruptcy, often called the “wage earner’s plan,” is for individuals with a regular income who want to reorganize their debts and create a repayment plan over three to five years. Here’s who is qualified to file Chapter 13 bankruptcy in Indiana:

1. Regular Income: To file for Chapter 13 bankruptcy, you must have a regular source of income. This income can come from sources such as wages, self-employment, or rental income.
2. Debt Limits: There are debt limits in Chapter 13 bankruptcy. These limits may be adjusted periodically to account for inflation.
3. Priority Debts: Your repayment plan must provide for the payment of priority debts, such as taxes and child support, in full.
4. Disposable Income: You must have sufficient disposable income after deducting necessary living expenses to fund the repayment plan.
5. Credit Counseling and Financial Management Courses: Similar to Chapter 7 bankruptcy, you must complete credit counseling before filing and a financial management course after filing for Chapter 13 bankruptcy.
6. Good Faith Effort: You must file for Chapter 13 bankruptcy in good faith, with a sincere intention to repay your debts through the proposed plan.

Both Chapter 7 and Chapter 13 bankruptcy offer relief to individuals in Indiana struggling with overwhelming debt. Qualifying for bankruptcy depends on factors such as your income, debt levels, financial history, and the type of bankruptcy you wish to file. Consulting with a knowledgeable attorney is crucial to assess your eligibility and ensure you make informed decisions about your financial future.

RESOURCES:

Do You Need a Lawyer to File For Bankruptcy in Indiana?

Whether you need a lawyer to file for bankruptcy in Indiana depends on your individual circumstances, the type of bankruptcy you’re considering, and your level of comfort with legal processes. While it’s technically possible to file for bankruptcy pro se (without an attorney), it’s generally advisable to seek legal representation, and here’s why:

Complexity of Bankruptcy Laws:

Bankruptcy laws are intricate and can be challenging to navigate, especially for individuals without legal training. The Bankruptcy Code is a federal law, but it interacts with state laws, including Indiana’s specific exemptions and rules. An experienced bankruptcy attorney understands these laws, ensuring you comply with all requirements and maximize the benefits of bankruptcy.

Chapter 7 vs. Chapter 13:

Determining whether Chapter 7 or Chapter 13 bankruptcy is more suitable for your situation is a critical decision. An attorney can assess your financial circumstances, income, and goals to recommend the right chapter for you. Chapter 7 is a liquidation bankruptcy, while Chapter 13 involves creating a repayment plan. The choice between the two chapters can significantly impact your financial future.

Completing Required Forms:

Filing for bankruptcy involves extensive paperwork, including the bankruptcy petition, schedules, and statements. An attorney can help you complete these forms accurately and ensure all necessary information is provided. Any mistakes or omissions in your bankruptcy paperwork can lead to complications, delays, or even the dismissal of your case.

Asset Protection:

Bankruptcy exemptions are crucial for protecting your assets. Indiana has specific exemptions that allow you to retain certain property during bankruptcy. An attorney can help you understand these exemptions and strategically use them to protect your assets while discharging eligible debts.

Creditor Negotiations:

A bankruptcy attorney can communicate with creditors on your behalf, helping you negotiate and settle debts before or during the bankruptcy process. This negotiation skill can potentially reduce the amount you owe and make the bankruptcy process smoother.

Court Representation:

If you file for bankruptcy without an attorney, you will be responsible for representing yourself in court. This can be intimidating, especially if you are not familiar with legal procedures and protocols. An attorney can provide the necessary legal representation, ensuring you meet all court requirements and deadlines.

Avoiding Mistakes:

Bankruptcy is a legal process with strict rules and timelines. Missing a deadline or making a procedural error can be costly. An attorney can help you avoid common mistakes and ensure your bankruptcy case progresses smoothly.

Dealing with Complex Issues:

If your bankruptcy involves complex issues like business bankruptcy, tax debts, or disputes with creditors, legal expertise becomes even more essential. An attorney can navigate these complexities effectively.

Credit Counseling and Financial Management Courses:

Before and after filing for bankruptcy, you are required to complete credit counseling and financial management courses from approved agencies. An attorney can guide you through this process and ensure compliance with these mandatory requirements.

Long-Term Financial Planning:

Beyond the bankruptcy itself, an attorney can provide guidance on rebuilding your credit and planning for a more stable financial future. They can help you develop strategies to avoid financial pitfalls and make informed decisions about your finances.

While hiring a bankruptcy attorney involves legal fees, the potential benefits often outweigh the cost. An attorney can help you achieve the best possible outcome in your bankruptcy case, protect your assets, reduce your debts, and provide valuable legal guidance throughout the process. However, if you are considering filing for bankruptcy in Indiana and have limited financial resources, you may explore free or low-cost legal assistance options through legal aid organizations or pro bono programs to ensure you have access to legal representation.

Cost to File Chapter 7 Bankruptcy in Indiana

The cost to file Chapter 7 bankruptcy in Indiana consists of several fees and expenses. While the specific amounts may vary slightly over time, here’s an overview of the typical costs involved:

1. Filing Fee: The primary cost associated with filing for Chapter 7 bankruptcy in Indiana is the filing fee paid to the U.S. Bankruptcy Court. The filing fee for Chapter 7 bankruptcy in Indiana is $350. However, it’s essential to check the current fee with the court, as these amounts may change periodically.
2. Credit Counseling Course: Before filing for Chapter 7 bankruptcy, you are required to complete a credit counseling course from an approved agency. The cost of this course can vary. Some agencies offer fee waivers or reduced rates for individuals with financial hardship.
3. Attorney Fees: While not a mandatory expense, it’s highly advisable to hire an attorney when filing for Chapter 7 bankruptcy in Indiana. Attorney fees can vary significantly depending on the complexity of your case and the attorney’s experience. However, fees can be higher if your case involves complexities like business assets or legal disputes.
4. Credit Report: You may need to obtain a recent copy of your credit report to ensure that you list all of your creditors accurately in your bankruptcy paperwork. The cost of a credit report varies but is generally minimal, typically around $12 to $18.
5. Other Costs: Depending on your specific circumstances, there may be additional costs associated with your Chapter 7 bankruptcy, such as notary fees, postage, and transportation expenses to attend court hearings or meetings with your attorney.

While some individuals may be tempted to file for Chapter 7 bankruptcy without an attorney to save money, it’s important to consider the potential risks and complications that can arise without legal representation. An experienced bankruptcy attorney can help you navigate the process, ensure your paperwork is accurate, and provide valuable guidance to maximize the benefits of bankruptcy while minimizing any potential pitfalls.

Additionally, if you are unable to afford an attorney, you may explore free or low-cost legal assistance options through legal aid organizations or pro bono programs in Indiana. These resources can help ensure you have access to legal representation even if your financial resources are limited.

Cost to File Chapter 11 Bankruptcy in Indiana

The cost to file Chapter 11 bankruptcy in Indiana can be significantly higher than the costs associated with Chapter 7 or Chapter 13 bankruptcy due to the complexity of Chapter 11 cases. Chapter 11 bankruptcy is typically utilized by businesses, but individuals with substantial debts and complex financial situations may also file under this chapter. Here’s an overview of the costs involved in filing for Chapter 11 bankruptcy in Indiana:

1. Filing Fee: The primary cost when filing for Chapter 11 bankruptcy is the filing fee, which is paid to the U.S. Bankruptcy Court. The filing fee for a Chapter 11 case is $1,915. However, these fees can change over time, so it’s essential to check the current fee with the court.
2. Attorney Fees: Given the complexity of Chapter 11 cases, legal representation is almost always necessary. Attorney fees for Chapter 11 cases can vary significantly depending on the size and complexity of the debtor’s estate, as well as the scope of legal services required. It’s not uncommon for attorney fees in Chapter 11 cases to be in the tens of thousands or even hundreds of thousands of dollars. Attorneys may charge hourly rates or flat fees, and these fees can vary widely.
3. Retainer and Expenses: In addition to attorney fees, you may be required to provide a retainer upfront to cover expenses related to your bankruptcy case. This can include court filing fees, appraiser fees, accountant fees, and other costs associated with the bankruptcy process.
4. Creditors’ Committee Fees: In some Chapter 11 cases, a committee of unsecured creditors may be appointed to represent the interests of creditors. The debtor is typically responsible for paying the reasonable fees and expenses of the creditors’ committee, which can be a significant cost.
5. Professional Fees: If you need to retain professionals such as financial advisors, accountants, or appraisers to assist with the bankruptcy process, their fees will also be incurred as part of the Chapter 11 process.
6. Plan Confirmation Costs: Developing and confirming a Chapter 11 plan can involve additional expenses, such as court hearings and legal work related to plan negotiations. These costs can add up, especially in complex cases.

Given the significant costs and complexities involved in Chapter 11 bankruptcy, it is essential to consult with an experienced bankruptcy attorney who specializes in Chapter 11 cases. Your attorney can provide a detailed estimate of the costs you can expect to incur based on your unique circumstances and guide you through the process to maximize the chances of a successful reorganization.

Cost to File Chapter 13 Bankruptcy in Indiana

The cost to file Chapter 13 bankruptcy in Indiana involves various fees and expenses, but it can be more affordable compared to Chapter 11 bankruptcy, which is typically utilized by businesses. Chapter 13 bankruptcy is designed for individuals with regular income who want to restructure their debts and create a repayment plan. Here’s an overview of the costs involved in filing for Chapter 13 bankruptcy in Indiana:

1. Filing Fee: The primary cost when filing for Chapter 13 bankruptcy is the filing fee paid to the U.S. Bankruptcy Court. The filing fee for a Chapter 13 case is $338. However, it’s important to check the current fee with the court, as these amounts may change over time.
2. Attorney Fees: While you can file for Chapter 13 bankruptcy without an attorney (pro se), it’s highly recommended to seek legal representation. Attorney fees for Chapter 13 cases can vary depending on the complexity of your case and the attorney’s experience. These fees are often structured to be paid as part of your Chapter 13 repayment plan, making it more manageable.
3. Credit Counseling and Financial Management Courses: Before and after filing for Chapter 13 bankruptcy, you are required to complete credit counseling and financial management courses from approved agencies. These courses typically cost around $27 to $58 each, but fee waivers or reduced rates may be available for individuals with financial hardship.
4. Credit Report: You may need to obtain a recent copy of your credit report to ensure that you list all of your creditors accurately in your bankruptcy paperwork. The cost of a credit report is generally minimal.
5. Other Costs: Depending on your specific circumstances, there may be additional costs associated with your Chapter 13 bankruptcy, such as notary fees, postage, and transportation expenses to attend court hearings or meetings with your attorney.

It’s essential to budget for these costs and consider the potential benefits of legal representation when filing for Chapter 13 bankruptcy. An experienced attorney can help you navigate the process, ensure your paperwork is accurate, and provide valuable guidance throughout the Chapter 13 repayment plan.

Reliable Bankruptcy Attorneys in Indiana

Below is a list of reputable bankruptcy attorneys in Indiana. They can help you with both personal and business bankruptcy information.

Bankruptcy Law Office of Mark S. Zuckerberg
429 N Pennsylvania St, Indianapolis, IN 46204, United States

Perez & Perez Bankruptcy
333 Alabama St Suite 350A, Indianapolis, IN 46204, United States

Sawin & Shea, LLC
6100 N Keystone Ave, Indianapolis, IN 46220, United States

Peter Francis Geraci Law L.L.C.
6353 Constitution Dr, Fort Wayne, IN 46804, United States

Adolf Law Office
4656 W Jefferson Blvd Ste 150, Fort Wayne, IN 46804, United States

Indiana Zip Codes We Proudly Serve:

Indianapolis

46227, 46226, 46254, 46237, 46203, 46222, 46224, 46219, 46217, 46220, 46260, 46235, 46241, 46201, 46239, 46218, 46229, 46236, 46205, 46234, 46221, 46268, 46214, 46256, 46208, 46202, 46240, 46250, 46228, 46259, 46231, 46278, 46204, 46280, 46225, 46216, 46290

Fort Wayne

46835, 46825, 46804, 46815, 46806, 46845, 46805, 46818, 46808, 46816, 46814, 46802, 46819, 46803, 46809

More Indiana Zip Codes we serve:

46910, 47916, 47320, 46701, 46001, 47917, 46911, 46103, 46012, 46016, 46013, 46011, 46017, 46702, 46703, 46030, 46704, 46501, 46104, 46705, 46031, 47918, 46502, 46706, 47001, 47102, 46710, 47420, 46123, 46105, 46106, 47006, 47010, 47920, 47421, 46107, 47011, 46711, 47104, 46301, 47512, 47513, 47424, 47832, 47401, 47403, 47408, 47404, 47406, 47405, 46714, 46110, 47601, 47106, 47324, 47921, 46504, 47833, 47514, 47834, 46506, 47836, 46913, 46507, 47515, 47922, 46111, 47923, 47012, 46112, 47220, 47325,

47516, 47326, 47924, 47925, 46914, 46508, 46915, 47926, 46721, 47223, 47327, 46113, 46917, 47108, 47224, 47519, 47520, 47837, 47838, 46032, 46033, 46115, 47928, 47016, 46303, 47521, 47840, 47330, 47110, 47929, 47610, 47111, 46117, 46304, 47611, 46723, 46034, 47930, 47129, 47841, 46510, 46118, 47226, 47842, 46120, 47427, 46121, 46035, 46725, 47201, 47203, 47227, 47331, 46919, 46730, 47846, 47112, 47932, 46731, 47114, 47522, 47933, 46732, 47017, 47229, 46307, 46511, 46920, 47612, 47523, 47334, 47847,

46122, 47940, 47941, 46733, 47524, 46922, 46923, 46310, 46926, 47115, 47230, 47525, 47018, 47335, 47527, 47848, 47336, 47337, 47231, 46311, 47942, 46312, 47338, 47116, 47339, 46124, 47528, 47613, 47117, 47232, 46514, 46516, 46517, 47429, 47529, 46036, 46125, 47118, 46524, 47531, 47714, 47711, 47712, 47715, 47710, 47720, 47725, 47713, 47708, 47943, 47849, 46126, 46928, 46127, 47850, 47340, 47532, 46128, 46038, 47234, 46929, 47020, 47119, 46039, 47648, 46040, 47341, 46130, 47944, 46930, 47946, 47649,

46041, 46131, 46044, 47120, 47431, 47535, 47235, 46737, 47432, 47536, 46931, 46932, 46738, 46404, 46408, 46403, 46407, 46406, 46409, 46402, 46933, 47342, 46740, 47537, 47122, 46133, 46045, 47948, 46526, 46528, 47433, 46741, 47615, 46530, 47123, 46135, 46140, 47345, 47344, 47240, 46936, 47124, 46143, 46142, 47616, 46319, 46531, 47022, 46144, 47346, 46742, 46532, 46323, 46324, 46320, 46327, 46340, 47243, 47125, 46743, 47853, 47434, 47348, 47244, 47639, 47640, 46341, 47436, 47126, 46322, 47949, 47854,

46745, 46342, 46047, 47541, 47023, 46146, 47246, 46746, 46747, 46748, 47542, 46750, 47437, 47855, 47950, 46048, 46147, 47438, 47546, 47130, 46938, 47247, 46049, 46755, 47351, 47951, 46939, 46759, 46760, 47952, 46345, 46346, 46050, 46148, 47857, 46534, 46901, 46902, 46347, 46348, 46940, 46350, 47135, 47954, 47909, 47905, 47904, 47901, 46761, 46941, 46405, 46349, 46943, 46536, 47550, 47136, 46763, 46537, 46051, 46764, 47024, 47025, 47137, 46052, 46538, 46765, 47551, 47858, 47352, 47138, 47353, 46766,

46946, 46767, 47552, 47955, 47441, 46149, 46947, 47553, 47354, 46356, 46950, 47355, 47619, 47443, 47654, 46951, 47250, 46150, 47140, 46953, 46952, 46770, 46056, 47859, 46151, 47141, 46957, 47142, 46155, 46055, 47860, 47957, 47260, 47958, 47143, 46539, 47861, 46410, 47030, 46958, 46959, 46360, 46057, 46540, 47356, 47031, 46542, 46365, 46543, 47145, 46156, 47357, 46544, 46545, 47446, 47358, 46771, 47959, 46772, 47557, 46773, 46157, 46960, 47862, 47558, 47960, 47359, 47360, 47032, 46158, 46160, 47963,

46161, 47964, 47361, 47620, 46058, 47304, 47302, 47303, 47306, 47305, 46321, 47147, 47034, 46550, 47448, 46162, 47150, 46552, 47362, 47863, 47631, 46774, 47965, 47160, 46163, 46553, 47263, 47967, 47968, 47161, 47035, 47162, 46961, 47449, 47630, 47966, 47969, 46164, 46060, 47264, 46366, 46554, 46962, 46165, 47265, 46555, 46556, 47660, 47561, 47367, 47562, 47036, 46967, 47451, 46968, 46063, 46776, 47452, 46561, 47037, 46777, 47163, 47970, 47564, 47453, 47665, 47971, 47164, 47454, 46166, 47270, 47368,

47666, 47455, 47038, 47865, 47165, 46064, 47369, 47974, 46970, 47567, 46562, 47866, 47975, 46167, 46168, 47568, 46779, 46563, 47868, 46781, 46368, 47371, 47633, 47869, 47670, 47456, 47166, 47373, 46171, 47977, 47978, 47980, 47634, 47374, 47380, 47871, 47040, 46172, 46974, 46783, 46975, 47635, 47872, 46371, 47574, 46784, 47981, 47874, 46065, 46978, 46173, 46175, 46979, 47575, 47576, 46785, 46373, 47876, 47577, 47381, 47167, 46374, 47578, 47579, 47382, 46375, 46376, 47580, 47273, 47457, 47170, 47172,

47383, 47274, 46068, 47879, 46377, 46176, 47880, 46069, 46565, 47384, 47581, 46982, 47458, 47459, 46984, 47683, 46614, 46628, 46619, 46637, 46615, 46613, 46617, 46635, 46601, 46616, 46786, 46787, 47460, 46788, 47385, 47386, 47462, 47584, 47272, 46985, 47982, 47881, 47585, 46180, 47464, 47983, 47387, 47882, 47388, 46379, 46070, 47041, 46986, 46987, 47465, 46567, 47175, 47280, 47586, 47637, 47802, 47803, 47805, 47807, 47804, 47809, 46381, 46071, 46570, 46072, 46571, 46181, 47588, 47467, 46988, 47177,

47390, 46382, 46791, 47468, 47884, 46989, 46990, 47281, 46383, 46385, 46991, 47987, 47590, 47282, 47042, 47043, 47591, 46992, 47638, 46573, 46182, 46574, 46994, 46390, 46792, 46580, 46582, 47501, 46793, 47989, 46794, 47990, 47469, 47003, 47060, 47906, 47907, 47991, 46183, 47885, 46074, 47596, 47992, 47283, 46391, 46392, 47597, 46393, 46184, 46075, 46394, 46186, 47470, 47393, 47993, 46996, 47394, 46076, 47994, 46590, 47598, 47995, 46795, 46797, 47471, 46595, 47997, 46798, 47396, 46998, 46799, 46077

---