The A’s and the B’s of Bankruptcy in Indiana

May 19, 2013 12:47 pm Published by

It helps, every so often, to go back to the basics. Since at least some of you reading this may be new to my Bankruptcy in Indiana article series, I thought a review might be in order.

On the “A” page of the uscourts.gov website, the most important basic term is Automatic Stay, which is defined as “an injunction that automatically stops lawsuits, foreclosures, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed”.

In “The Bankruptcy Handbook” author John Ventura offers a close-up view of what the automatic stay does:

  • Your mortgage lender cannot foreclose on your home   One of my Richmond, Indiana bankruptcy attorney colleagues explains to clients that bankruptcy cannot discharge a secured debt such as a mortgage, but that the automatic stay turns off the pressure while the bankruptcy is in progress.
     
  • Your car lender cannot repossess your vehicle. Some of the Columbus bankruptcy lawyers fight to get cars back for their clients even after the vehicles have been repossessed.
     
  • Your creditors cannot sue you
     
  • The IRS and the state taxing authorities cannot continue trying to collect past due taxes Contrary to the myth that taxes cannot be discharged in a bankruptcy, at the Zuckerberg bankruptcy law offices, we are able to get certain back taxes discharged all the time.
     
  • Debt collectors cannot call you about a past due debt  In fact, under the Automatic Stay, creditors cannot even send letters, because the whole concept behind the bankruptcy system is to buy time for honest debtors to restart their financial lives.


The most important term on the “B” page in “The Bankruptcy Handbook”, in my view, describes the bankruptcy petition as the document filed by the debtor at the time of the bankruptcy filing.  A good part of my work as a debt consolidation lawyer offering Indiana bankruptcy help has to do with researching and cataloging all the information for the petition.

When I was discussing a case the other day with one of my Columbus bankruptcy lawyer colleagues , we agreed that we don't see many clients who set out to willingly commit fraud. Most of the time, clients just don't understand what information they need to include in their paperwork when they're filing personal bankruptcy in Indiana.

It's complicated when you’re trying to organize all your documents, and bankruptcy clients are obviously not in the calmest frame of mind as they contemplate filing individual bankruptcy in Indiana, or even small business bankruptcy in Indiana.

The A’s and B’s of Indiana bankruptcy law begin with the Automatic Stay and the bankruptcy petition!
 

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This post was written by Mark Zuckerberg

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