In a Chapter 7 case, once the case is filed we will attend a meeting with the court approximately 30-45 days after the case is filed and the debts will be discharged approximately 60 days later. Therefore, we can expect a total period of approximately four (4) months from filing date to discharge date.
In a Chapter 13 bankruptcy, Congress requires that a plan payment continue anywhere from 36-60 months. Once the plan payments are complete, the court discharges debts approximately 60 days later. However, while you are in bankruptcy you will be protected by the stay (which prohibits creditors from collecting any debts).
Questions About Bankruptcy
Is bankruptcy right for me?
While we will be able to assist you with the entire bankruptcy process and will answer all of your questions to make sure you understand the pro’s and con’s of filing, whether to file remains a personal choice.
In our opinion, however, if you feel like the burden of your debt is starting to create problems in your life (such as martial issues, high blood pressure or other medical issues, unbearable stress, or a decrease in job performance) then it may be a good option for you.
How much does it cost to file bankruptcy?
There are two components to figuring the cost for filing bankruptcy. The first, and easiest cost to calculate is the court’s filing fee, which is the amount the court charges to accept a bankruptcy filing.
As of June 1, 2014, the court charges and collects $310.00 for a Chapter 13 filing and $335.00 for a Chapter 7 filing. The second component are the attorney fees, and that amount is going to depend on the complexity of your case.
For simple Chapter 7 cases, our fees start at $665.00, plus costs, and can move upward for more complex cases (dealing with parcels of real estate, businesses, tax issues, judgments, etc.)
Chapter 13 fees are set by the court, but the majority of fees are paid through a bankruptcy reorganization. The upfront fees to file a Chapter 13 may be as low as $500.00.
Our firm is committed to providing the best possible service along with low fees and will consider any specific circumstances you may have in determining price.
Do I need a lawyer to file for bankruptcy?
No, the court does not require that you use an attorney and you may be able to go through the process without an attorney. However, we would not recommend it.
An experienced bankruptcy lawyer will be able to help you determine the value of your assets, advise you on what the law allows you to keep, make the necessary calculations under the means test to determine which chapter to file.
In many cases debtors may cost themselves a lot more by not seeking the advice of an experienced attorney.
Do both spouses have to file for bankruptcy?
No, there is no requirement in the Bankruptcy Code that a married couple must file bankruptcy jointly. In fact, in many cases our office will not recommend a joint filing. For example, if a couple is newly married and one spouse has brought significant debt to the marriage, then it may be best that only one spouse file.
However, there are circumstances where a creditor might be able to sue spouses even if one spouse did not sign a contract for the debt. You should seek advice from an attorney regarding the applicability of the “Doctrine of Necessaries” to your fact pattern.
The Indiana Supreme Court has held that “each spouse is primarily liable for his or her independent debts.” Typically, a creditor may look to a non-contracting spouse for satisfaction of the debts of the other only if the non-contracting spouse has otherwise agreed to contractual liability or can be said to have authorized the debt by implication under the laws of agency.
When, however, there is a shortfall between a dependent spouse’s necessary expenses and separate funds, the law will impose limited secondary liability upon the financially superior spouse by means of the doctrine of necessaries.” See In Bartrom v. Adjustment Bureau, Inc., 618 N.E.2d 1, 8 (Ind. 1993).
Does being divorced affect bankruptcy?
Yes, it might in several ways. There are certain debts that may be incurred during a divorce through a written court order or property settlement that may not be dischargeable in a Chapter 7 bankruptcy.
An experienced attorney will need to review a divorce decree to determine whether you may face contempt actions for filing to abide by the order following completion of a Chapter 7 bankruptcy. A Chapter 13 may be used as a “super-discharge” to eliminate non-child support divorce orders.
In addition, property that you may receive in the future through a divorce decree may be taken in a Chapter 7 filing. Any time there is a divorce that is pending or recently completed, you should advise your attorney of this fact and supply a copy of the divorce decree and property settlement.
Should I file for divorce before filing for bankruptcy?
There are many factors that would help determine how to answer that question. Such things might include:
- How long have the parties been separated?
- What assets do you and the other spouse have?
- Are there joint debts that you would both like to discharge prior to final entry of the divorce decree?
- How long will the divorce take to complete versus current action of creditors, such as a pending garnishment?
- Are there joint debts for which the court might hold you responsible to pay?
An experience bankruptcy attorney will be able to discuss the risks and rewards regarding filing before or after a divorce is complete.
Can I stop bill collectors from calling me?
The moment a bankruptcy case is filed the law requires that creditors stop all collection activity including telephone calls, billings, garnishments, freezing bank accounts, and all lawsuits and foreclosures.
If a case has not been filed then the only law that may decrease the frequency of collector calls is the Federal Fair Debt Collection Practices Act. This law only applies to debt collectors and not to the actual creditor itself.
If you are receiving harassing telephone calls then you should contact legal counsel as soon as possible.
Listing Your Bills:
When you list your bills prior to filing for bankruptcy, it is your responsibility to provide the names, proper addresses, and account numbers for all your bills. A bill that is not listed in the bankruptcy or that has a wrong address cannot be discharged.
You will be given a copy of the bankruptcy papers to keep for your records. It is your responsibility to check the papers in Schedules D, E, and F, to be sure all your bills are listed.
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