Indiana bankruptcy laws require all consumers to enroll into a credit-counseling course before they make any attempts to petition the court for any chapter. According to the Bankruptcy Act of 2005, there must be a six-month period between the completion of this course and their court petition. This provides ample time for them to seek other resolutions through legal counsel to settle their debts first. If you wish to file for either Chapter 7 and 13, you should contact a Bankruptcy Attorney in Sullivan Indiana today.
What are the Requirements of Bankruptcy
All consumers are required to pass the means test as outlined in the Indiana state bankruptcy laws. To pass this assessment, the consumer’s income must range either above or below a specific average based on the type of bankruptcy chapter they are filing. If they wish to file chapter 13, their income level should be greater than $41,677, which is the average household income for Sullivan County. If they wish to file for chapter 7, their income should fall below this median.
How is Income Evaluated?
The first step for examining is to collect all income statements from the consumer for the last six months. This includes everything from their wages to profits earned from a rental property or dividends from stocks. The attorney uses these figures to arrive at an approximate annual income level for the consumer and establishes for which bankruptcy chapter he or she is eligible.
Reviewing the Property
An attorney makes determinations about the consumer’s property after examining all titles and deeds available. If a consumer wishes to file for chapter 7, he or she must possess properties and assets that equate to the value of their debts. The process requires them to settle debts through liquidation.
Bankruptcy is a debt-relief opportunity in which consumers can acquire either more time to resolve their debts or sell their property to pay off their debts. When consumers are overwhelmed by debt, this is an advantageous choice to prevent any further financial hardships.
