Bankruptcy  |  Consumer Rights  |  Estate Planning & Probate  |  Mediation
 

Free Initial Consultation
 (317) 623-3030

Eric C. Lewis  
Attorney at Law  

Your Fresh Financial Start Begins Here - Serving all of Central Indiana




















 

Chapter 7 Bankruptcy: A Fresh Financial Start

WHY FILE CHAPTER 7 BANKRUPTCY?

Chapter 7 bankruptcy is the most widely employed means of seeking bankruptcy protection. One who files bankruptcy is asking for a court-ordered "discharge" of personal liability on debt - eliminating debts when you do not have the ability to make any meaningful dent into your existing liabilities. Bankruptcy allows one to:

  • stop debt collection activity/harassment
  • stop wage garnishment/liens/frozen bank accounts
  • stop debt collection lawsuits
  • stop foreclosure / repossession
  • keep everything you own that is exempt under law
  • discharge personal liability on most if not all unsecured debts and secured debts on surrendered collateral
  • eliminate liability on broken leases, contracts, old utility bills, medical bills
  • get a fresh financial start and start rebuilding credit worthiness

If any of the above items describe your life, then Chapter 7 bankruptcy may be a good solution to get you back on financial track. Bankruptcy eliminates those dischargable debts that you cannot afford to pay.

WHO FILES CHAPTER 7 BANKRUPTCY?

Bankruptcy is the legitimate means of getting a fresh financial start from overwhelming debt. Bankruptcy may be a good solution if any of the following apply and you are:

  • unable to pay more than the minimum payments on credit cards or are behind on payments
  • unemployed or underemployed and can't keep up with your bills
  • working multiple jobs just to keep afloat
  • never getting ahead on your debts
  • unable to get credit because of negative/derrogatory information on report
  • facing lawsuits/judgments/garnishments
  • foreclosure or repossessions
  • suffering constant stress about bills or making ends meet

YOU ARE NOT ALONE

The recession does not discriminate when it comes to job loss, layoffs, pay reductions and no raises. Many good, hard-working people are facing hard times like never before. In 2010, in the United States District Court for the Southern District of Indiana, which includes Indianapolis, nearly 20,000 bankruptcy petitions were filed. In the Indianapolis division alone, there are almost 1,000 bankruptcy cases filed monthly on average. It doesn't take much for anyone to fall behind on bills - even a short term layoff can result in getting behind on bills and going into default which can lead to lawsuits and judgments.

WHO QUALIFIES FOR CHAPTER 7 BANKRUPTCY?

Single individuals, a spouse, married couples and corporations may all file for Chapter 7 bankruptcy relief. For debtors whose debts are primarily consumer, to qualify for Chapter 7, you must pass the "means test" which measures ones ability, or "means," to pay back debt. If you make too much money and have measurable disposable or discreationary income, you would not qualify for Chapter 7. Attorney Lewis will advise you whether you are eligible based on your income, family size and necessary living expenses.

For more information on the Means Test and qualifying for Chapter 7, read "How much money can I make and still do Chapter 7."

KEEP YOUR HOME, CAR AND EVERYTHING YOU OWN

Chapter 7 bankruptcy discharges personal liability on debts and in turn, creditors receive any "non-exempt" assets that you have. For the majority of people who file Chapter 7, this means keeping everything as "exempt" from the creditors of the bankruptcy estate. Attorney Lewis analyzes every client's individual situation to determine if there is equity in property or assets of any type that would subject that property to liquidation. By far, the most common asset to be liquidated in Mr. Lewis' practice can, in circumstances, be all or part of a tax refund. Mr. Lewis advises clients appropriately in this situation with regard to timing of filing and what asset, if any, would be subject to liquidation.

CLICK HERE TO LEARN ABOUT CHAPTER 13 DEBT REORGANIZATION

CLICK HERE FOR BANKRUPTCY FREQUENTLY ASKED QUESTIONS



2010-2012 © Lewis Legal Services, P.C.
2010-2012 © Indianapolis Bankruptcy Law Office of Eric C. Lewis

Lewis Legal Services, P.C. is a federal debt relief agency that helps people file for bankruptcy relief.