What To Expect When Filing Chapter 7 Bankruptcy In Indianapolis

by | Apr 8, 2014 | Lawyers and Law Firms

Chapter 7 Bankruptcy in Indianapolis IN requires a liquidation of properties and assets; a trustee manages this process. To qualify the consumers must have an income that is lower than the median income for Marion County; these consumers do not qualify for Chapter 13. The average income for the county is $40,421 for individuals and $49,387 for families. Consumers with incomes that exceed the median are eligible to file for either chapter.

Which Debts are not Eligible for Discharge?

Any debt that is associated with supporting the consumer’s children or former spouses are not eligible for discharge. This includes overdue child support or alimony payments. Furthermore, any student-loan debts that are associated with the consumer, including those related to their child in which they are required by court-order to pay are not eligible. The consumer’s student loans are not discharged unless the judge establishes a financial hardship.

Any debts linked to criminal acts in which the consumer owes a fine or coverage for injuries do not qualify. Debts that relate to malicious injuries or intentional property damage are not discharged. The same applies to debts associated with theft of any kind in which a breach of trust was involved.

Any overdue tax payments for the previous three years before filing the claim are the consumer’s responsibility and are not excluded. Additionally, any debts that were omitted by the consumer remain their responsibility after the case is concluded. Creditors who discover that the consumer failed to acknowledge the debt may file a claim against them.

Challenges Against Discharge

The consumer’s creditors have the right at any time during the bankruptcy hearing to challenge any discharge of debt. However, the debt must meet specific criteria. Creditors can challenge a dismissal of any credit card or other credit-based purchases for non-essentials or luxury items that exceed $1,150; the same value is applied to payday loans or cash advances.

Any outstanding debts owed by the consumer associated with divorce settlements are challenged by the former spouse. They are eligible for discharge only if the spouse passed away prior to the petition for bankruptcy. If she or he becomes incapacitated, the judge may discharge the debt. Consumers with questions about bankruptcy can Visit us website


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