A bankruptcy means test is a determination of your are eligibility for Chapter 7. Your family size, along with your income level compared to the medium income in Indiana, will determine if you pass the means test and are eligible for Chapter 7.
For immediate assistance, please contact us.
Archives for July 2013
Should my age influence my decision to file for bankruptcy?
Naturally, your age and future goals will be a factor when considering to file for bankruptcy.
If you are older and near retirement or you already live on a fixed income, your decision may be quite different than if you are a young single entrepreneur whose business venture did not succeed as expected or you are a middle-aged married parent who has been down-sized by a corporation after a decade or more of service.
We will be glad to help you better understand how your age should influence your decision to file for bankruptcy. For a free consultation, please contact us to discuss your situation.
What are exemptions?
In a Chapter 7 bankruptcy, property that may be kept (which is exempt from liquidation) is called an exemption. In Indiana, the major exemptions are as follows:
- Retirement (in a qualified retirement account from the debtors’ pre-tax earnings) is fully exempt;
- Real or personal property constituting the debtor’s primary residence is exempt up to $22,750.00 in equity ($45,500.00 for a married couple);
- Personal property valued up to $12,100.00 is exempt ($24,200.00 for a married couple); and
- Intangible assets up $450.00 are exempt ($900.00 for a married couple).
For more information about exemptions, please contact us.
Can I keep my house if I file for bankruptcy?
In many personal bankruptcy cases you can keep your primary residence. Learn more at: What is Bankruptcy.
If you feel you need to make an immediate decision about bankruptcy, because you are having trouble (or have stopped) making the mortgage payments on your home, please contact us or another bankruptcy attorney right away to discuss your options before you make your final choice.
Does my house being in foreclosure affect my ability to file?
Filing for bankruptcy may delay (Chapter 7) or prevent (Chapter 13) you from losing your primary residence to foreclosure. If you are at a point where you need more information about the affect foreclosure might have on your ability to file for bankruptcy, you probably should contact us right away. We can help you.
What if I own other real estate property?
Real estate property other than your primary residence may not be considered as exemptions in a personal bankruptcy case, but every case is different, so your situation would need to be looked at in more detail.
For a free consultation about your circumstances, please contact us.
Can I transfer ownership of property prior to filing for bankruptcy?
Transferring ownership of property immediately prior to filing for bankruptcy will cause you serious problems, so do not do it. Learn more: Abuse of Bankruptcy Process.
If you are considering transferring property and then declaring bankruptcy before at least a full year has passed, please contact us or another bankruptcy attorney first.
Does applying for a loan modification affect my ability to file?
Filing for bankruptcy after you have applied for a loan modification may jeopardize your application.
Applying for a loan modification after you have filed for bankruptcy can be a very complex process that includes notifying the court, so it should only be done after consultation with your bankruptcy attorney.
For immediate assistance, please contact us.