Filing for Chapter 7 Bankruptcy in IN With A Lake Station Chapter 7 Bankruptcy Lawyer
Chapter 7 bankruptcy is form of bankruptcy that is sought by private individuals who are in too much debt. Chapter 7 is often referred to as liquidation bankruptcy because all of the debtor’s assets, except for those assets that are exempt, are to be sold (i.e., liquidated) by the bankruptcy trustee, in order to repay the debtor’s creditors as much as possible for the outstanding debts.
Chapter 7 bankruptcy is an attractive type of bankruptcy for individuals who are looking to rid themselves of a majority of their debts. Chapter 7 bankruptcy results in basically a clean slate and a fresh start. As long as you do not make too much money and you have not filed for bankruptcy in recent years, you are most likely eligible to file for Chapter 7 bankruptcy.
Whether or not you have too much income is a critical factor when it comes to deciding if you are eligible for Chapter 7 bankruptcy. In order to be eligible for Chapter 7 bankruptcy, debtors must satisfy the “means test”, which is basically an evaluation of how much disposable income a debtor has available to repay debts. If you as a debtor have too much disposable income, you may be considered by the bankruptcy judge to be able to repay some of your debts with your disposable income. This can cause your Chapter 7 bankruptcy case to be shifted over to a Chapter 13 bankruptcy proceeding.
Exemptions For Certain Property Under Chapter 7
Certain assets can be protected from Chapter 7 bankruptcy if they are exempt. Exempt property cannot be liquidated for the purposes of repaying your creditors. Bankruptcy exemptions vary from state to state. In Indiana, there are several common exemptions, including:
- A certain amount of equity in your primary residence can be exempt from Chapter 7 bankruptcy.
- A certain amount of value in tangible personal property can be exempt from bankruptcy, such as a car (through the wild card exemption) or personal possessions.
- Money in a medical care or health savings account can be exempted.
- Any interest in a qualified tuition program, such as a 529(b) college savings account, or an educational savings account.
- Disability benefits, workers’ compensation benefits, and unemployment compensation.
When filing your bankruptcy petition, you can use a Schedule C form to claim or designate what property you are claiming exemption on. If you are confused about what property you can exempt from bankruptcy, or have any questions about how to properly claim exempt assets, you can discuss these issues with an experienced Indiana bankruptcy attorney.
You Need A Dedicated and Committed Bankruptcy Lawyer
Filing for bankruptcy can be incredibly overwhelming for someone who is unfamiliar with bankruptcy procedure. It is difficult to know what exemptions you can take for your personal property that will protect some of your assets from your bankruptcy proceeding. The Lake Station bankruptcy attorneys at the Law Office of Kevin M. Schmidt, P.C. are dedicated to helping clients with their Chapter 7 bankruptcy proceedings. Reach out to us today for help.