Filing Chapter 7 13 Bankruptcy Indiana

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Bankruptcy Law

The new Bankruptcy code has been passed the new manual has been updated and is a download for step by step planning.  The top 12 of 211 changes are.  

1. Until October 2005 you only needed your last 2 years of income taxes, 6 months of checking account records, a time stamped copy of your deed and mortgage plus copies of car titles. After 10-2005 the number of documents almost triples you will also need:
   1. Proof of income for the last 6 months including at least the last 60 days of pay stubs or more as evidence.
   2. Photo Id as proof of identity
   3. Proof of your current expenses you are claiming utility bills etc
   4. A certificate from an approved Credit Counseling agency (debtor traffic school). 
   5. You will need a copy of your tax records from the IRS not your personal record
   6. You will need account numbers as well as the addresses for your debts
   7. If you have been to an agency like Ameridebt a copy of the debt repayment plan
   8. If you have any education account a copy of that
   9. A comprehensive list of your household goods

   Mandatory Credit Counseling In order to file any bankruptcy you have to go to credit counseling by an approved non profit credit counseling agency this is probably classes plus counseling.

   Mandatory Debtor Education.  You have to take classes after you file too. 

   If you make under the average according to a chart that includes your family size and expenses you may file a Chapter 7 or 13 automatically.   The means test allows you to deduct secured expenses such as mortgage payments and car payments and other normal expenses.   You can make over the average income and still file if you pass the means test.  If you make over the average income for your family and also fail the means test you must file a Chapter 13 you cannot file a Chapter 7. If you filed a Chapter 7 you cannot file another Chapter 7 for 8 years, you cannot file a 13 for 4 years. If you filed a Chapter 13 you cannot file another 13 for 2.

   Finance companies used to take your furniture as security under the new law we cannot destroy these liens as easily. 

   Both government and now non government student loans are dischargeable

   Income taxes over 3 years old will be more difficult to discharge

   It becomes fraud to charge over $750 within 90 day the old rule was $1000 in 60 cash advances or luxury goods purchases make this only $500

   Chapter 7 Redemptions (buying your car from the bank) were for the wholesale value now it is the retail value

   Chapter 13’s have to pay the car company back the full amount of the loan or offer a take it or leave it plan to pay less.    Chapter 13 plans if you earn over the average must now be for 5 years and must pay all the left over income.  Plus you must attend a hearing as least 10 days prior to discharge and prove you have no pending debts for fraud or felony charges. 

   Child Support must be paid and up to date or the case will be dismissed or converted. But a debt for Child Support to the government may be paid in a 13 as long as it pays all of the disposable income for 5 years. To a parent it must be paid in full. 

   Overall the proposed new bankruptcy filings will discriminate against low income minorities, women and children who are far more hurt by the act than more wealthy persons that are less affected by the Chapter 7 and Chapter 13 filings and changes.   

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