The C’s and the D’s of Bankruptcy in Indiana

May 19, 2013 12:59 pm Published by

This week in my Bankruptcy in Indiana article series, I’m going back to the basics. Whether you’re a new or veteran reader thinking of filing personal bankruptcy in Indiana, it can be helpful to review some of the terminology and some of the rules of the game.

On the “C” page of the website, the different “chapters” or types of bankruptcy are explained. For clients of the five Zuckerberg bankruptcy law offices, the two types that are most often used are:

Indiana bankruptcy Chapter 7, which the website describes as “the chapter of the Bankruptcy Code providing for liquidation of a debtor’s nonexempt property and the distribution of the proceeds to creditors.”

Chapter 13 bankruptcy law, which the website describes as providing “for adjustment of debts of an individual with regular income”.  Chapter 13, as all good bankruptcy attorneys in Indiana explain to clients, allows a debtor to keep property and pay debts over time, usually three to five years.

Over the more than twenty six years I've been a debt consolidation lawyer offering Indiana bankruptcy help, one of the truly important functions of my work with clients is understanding the ins and outs of the "bankruptcy means test" so that I can advise clients which chapter of bankruptcy is most appropriate given all their circumstances.

The most important term on the “D” page of the website, in my view, is “discharge”, which the website defines as the “release of a debtor from personal liability for certain debts set and prevents the creditors owed those debts from taking any action against the debtor to collect those debts.”

As one of my colleagues, a Columbus bankruptcy lawyer, often says, when people get sued…they feel helpless, especially when they know they owe the money.  And because they feel helpless….they tend to just sit back and do nothing. To make things worse, they ignore the mail, even the paper that gives them a right to protect their property by claiming exemptions available under the law. And, by not claiming their exemptions, they may give the creditor the right to take their car, truck, household goods and possibly even their home.

  • Bankruptcy usually stops judgments.
  • Bankruptcy usually protects property.
  • Bankruptcy usually gets rid of debt.
  • Bankruptcy usually takes off the pressure.

The C’s and D’s of Indiana bankruptcy law begin with choosing a Chapter and, hopefully, end with a discharge of debt!


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This post was written by Mark Zuckerberg

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