When my clients at Halcomb Singler, LLP, file bankruptcy they are often very focused on the 341 hearing from that moment forward. The 341 hearing is a hearing that each person who files a bankruptcy petition must attend where a trustee asks the debtor questions about his or her bankruptcy petition and creditors are invited to attend. Although I prepare each client for their 341 hearing (see prior blog on what to expect at the 341 hearing) by giving them questions the trustee will be likely to ask and by answering their questions about the hearing, the bottom line is that most people are still nervous. In my opinion, this nervousness is human nature and completely normal. Most of my clients walk out of the 341 hearing feeling as if a weight has been lifted off of their shoulders. However, it is important to remember that the bankruptcy case is not over after the 341 hearing.
For example, bankruptcy debtors are required to take a financial management course within 45 days of his or her 341 hearing. This is 45 days from the original date set for the hearing and not from the date of a continued 341 hearing. It is very important that if the debtor has not completed this course prior to the 341 hearing that they get it done as soon as possible after the hearing. Failure to take this course and to file a specific form with the court informing them you have taken the financial management course will result in the closing of your bankruptcy case without a discharge. Since a discharge is the legal term that means that you are no longer responsible for paying your creditors, there is typically no point in filing a bankruptcy to have it closed without a discharge.
If you fail to complete the financial management course within the time limit and you receive a notice that your bankruptcy has been closed without a discharge all is not lost. In the Southern District of Indiana it is typically fairly easy to petition the court to reopen your bankruptcy and file the proper documentation. However, this is an additional filing fee and certainly likely to be additional attorney fees in the event the deadline is missed.
It typically takes 6 to 8 weeks after the 341 hearing for a debtor to receive his or her bankruptcy discharge. However, continue to pay attention to correspondence received from your attorney during this time, as it is possible that there are reaffirmation agreements or other documents that still need to be executed for filing with the Court.
If you are considering bankruptcy and would like to sit down with an Indiana bankruptcy attorney for a free initial consultation please call me at 317-575-8222. I file Chapter 7 and Chapter 13 bankruptcy petitions for those living in Indianapolis, Carmel, Fishers, Noblesville, Anderson, Tipton, Zionsville, Kokomo and the surrounding areas.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
Monday, August 29, 2011
Thursday, August 25, 2011
When are you eligible to file bankruptcy in Indiana?
Whether you can file a bankruptcy in Indiana depends, in large part, on whether you currently live in Indiana, how long you have lived in Indiana or how long ago you lived in Indiana.
In order for Indiana to be the proper venue (place) to file a bankruptcy petition you must fit into one of the above categories. For Indiana to be the proper venue you must have lived in Indiana for the better part of the last 180 days. Therefore, if you were born and raised in Indiana and have never lived in any other state you are eligible to file some type of bankruptcy in Indiana. Even if you no longer live in Indiana, but just moved out of the state and have lived in Indiana more days than anywhere else in the last 180 days you can file a bankruptcy in Indiana. Likewise, if you just moved to Indiana you cannot file a bankruptcy here until you have lived in Indiana longer than any other state in the past 180 days.
Once it has been determined that a bankruptcy may be filed in Indiana, there are two districts (Northern and Southern) in which a bankruptcy petition may be filed. Again, whether your bankruptcy petition is filed in the Northern or Southern District of Indiana depends on your address. Many Halcomb Singler clients are surprised to hear how far North the Southern District reaches. Specifically, those living in Indianapolis, Crawfordsville, Tipton, Kokomo and Anderson would all file in the Southern District of Indiana. If you are interested in seeing the counties included in the Southern District click here. Even within the Northern and Southern districts the bankruptcy courts are divided into different sections called divisions such as the Indianapolis division, Terre Haute division and New Albany division.
At Halcomb Singler, LLP, we typically represent clients in the Southern District of Indiana, Indianapolis division. Our clients usually live in Marion, Hamilton, Tipton, Howard, Boone, and Madison counties and their bankruptcy hearings take place in Indianapolis (for Marion, Hamilton and Boone Counties), Kokomo (for Tipton and Howard County) and Anderson for Madison County.
Deciding the proper venue to file a bankruptcy petition is often the easy part. If you need guidance as to whether you should or should not file bankruptcy, the different types of bankruptcy and the consequences of filing each type or how your property is treated during bankruptcy I am happy to meet with you. If you would like to set up an appointment for a free initial consultation please contact me at 317-575-8222 or click here to complete our form and we contact you.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
In order for Indiana to be the proper venue (place) to file a bankruptcy petition you must fit into one of the above categories. For Indiana to be the proper venue you must have lived in Indiana for the better part of the last 180 days. Therefore, if you were born and raised in Indiana and have never lived in any other state you are eligible to file some type of bankruptcy in Indiana. Even if you no longer live in Indiana, but just moved out of the state and have lived in Indiana more days than anywhere else in the last 180 days you can file a bankruptcy in Indiana. Likewise, if you just moved to Indiana you cannot file a bankruptcy here until you have lived in Indiana longer than any other state in the past 180 days.
Once it has been determined that a bankruptcy may be filed in Indiana, there are two districts (Northern and Southern) in which a bankruptcy petition may be filed. Again, whether your bankruptcy petition is filed in the Northern or Southern District of Indiana depends on your address. Many Halcomb Singler clients are surprised to hear how far North the Southern District reaches. Specifically, those living in Indianapolis, Crawfordsville, Tipton, Kokomo and Anderson would all file in the Southern District of Indiana. If you are interested in seeing the counties included in the Southern District click here. Even within the Northern and Southern districts the bankruptcy courts are divided into different sections called divisions such as the Indianapolis division, Terre Haute division and New Albany division.
At Halcomb Singler, LLP, we typically represent clients in the Southern District of Indiana, Indianapolis division. Our clients usually live in Marion, Hamilton, Tipton, Howard, Boone, and Madison counties and their bankruptcy hearings take place in Indianapolis (for Marion, Hamilton and Boone Counties), Kokomo (for Tipton and Howard County) and Anderson for Madison County.
Deciding the proper venue to file a bankruptcy petition is often the easy part. If you need guidance as to whether you should or should not file bankruptcy, the different types of bankruptcy and the consequences of filing each type or how your property is treated during bankruptcy I am happy to meet with you. If you would like to set up an appointment for a free initial consultation please contact me at 317-575-8222 or click here to complete our form and we contact you.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
Monday, August 22, 2011
Want to get out of debt? Stop using credit!
I will admit that it is easier said than done to just stop using credit. But this really is the only way to get out of debt. The extra money that you are paying toward your debts each month isn't going to amount to a hill of beans if you are continuing to incur new debts. So, if your goal is to pay off your debt, start by promising yourself that you will not use credit. Like any other goal, it is helpful to have a plan on how you can succeed in stopping your use of credit. One of the most common mistakes that I see that causes people to use credit is that they fail to start an emergency fund. If you don't have an emergency fund it will only be a matter of time until you have to use credit. For example, if your refrigerator breaks down and you don't have any cash set aside to purchase a new one you will use credit because you need a refrigerator to live. The same thing can be said of a car repair, furnace repair, etc.
In my opinion, your emergency fund should have at least $1,000.00 in it. Many people wonder if I am kidding when I say this. They tell me that there is no way they could get $1,000.00 in a bank account. The only way to do this is to start putting money in the bank in whatever small amount you can and to just continue to do this over time. While you are building your emergency fund do not concentrate on making additional payments on your debt. Pay the minimum payments and put any extra into your emergency fund. Once you get $1,000.00 in your emergency fund go back to making larger payments on your debt whenever possible. When you have to tap your emergency fund (notice I said when and not if) go back to minimum payments until you have been able to build it back up. Having an emergency fund will help stop the cycle of paying down debt only to incur new debt.
Another key to getting out of debt is to put the idea of credit cards for an emergency out of your mind. If you have several credit cards I recommend cutting up all but one of them. As for the one you keep, do not carry it in your wallet or purse. It is just too easy to pull out the credit card and pay for something if you are carrying it on you. If you have left it at home you will need to make sure that you actually have the money to pay for something rather than just putting it on the card.
Next, it is important to set up a realistic budget and set spending limits for your variable expenses such as food, clothing, entertainment (this includes eating out), gasoline and haircuts. Once you have set your budget for these items go to the bank once a month and take out the allowed budget for these categories in cash. Use envelopes or some sort of organizer to keep the cash separated into each budget category. When you need a haircut, pay in cash from the haircut envelope, etc. But once you are out of money for the month you need to STOP SPENDING. Using cash and the envelope system is important because it makes us think about the money we are spending, but also acknowledges that you do need to spend some money. It is more effective to budget for what you will spend than to attempt to spend nothing. Attempting to spend nothing is much like fad dieting in that eventually you will fall off the wagon and go on a spending spree due to too much self-depravation.
If you follow these tactics you will have the best chance to get out of debt without bankruptcy. Once you have paid off any unsecured debt such as credit cards, medical bills, personal loans, etc., then work on adding to your emergency fund. You should really work to build your emergency fund to at least 6 months of your household expenses. At that point cancel the last credit card. Yep. It is possible to live without a credit card. I have done exactly this for years and it feels great. Anything that you might need a credit card to do can also be done with a debit card. And don't try to tell me that those points or air miles are better than not owing any money to a credit card company. As I once heard a bankruptcy judge in the Southern District of Indiana say there is a reason that they call it a "Master"card....it is because by owing money on a credit card you become a slave to your debt.
Hopefully this plan will work to help you get out of debt. But sometimes lawsuits, garnishments, long-term unemployment or medical conditions make it impossible to get out of debt using any method. If you find yourself in this situation and live in Indianapolis, Fishers, Carmel, Noblesville, Tipton, Zionsville, or anywhere else in Central Indiana I would be happy to speak with you to help you understand how bankruptcy works and whether it is a good idea for you or not. If you would like to meet with me for a free initial consultation call Halcomb Singler, LLP, at 317-575-8222.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses
In my opinion, your emergency fund should have at least $1,000.00 in it. Many people wonder if I am kidding when I say this. They tell me that there is no way they could get $1,000.00 in a bank account. The only way to do this is to start putting money in the bank in whatever small amount you can and to just continue to do this over time. While you are building your emergency fund do not concentrate on making additional payments on your debt. Pay the minimum payments and put any extra into your emergency fund. Once you get $1,000.00 in your emergency fund go back to making larger payments on your debt whenever possible. When you have to tap your emergency fund (notice I said when and not if) go back to minimum payments until you have been able to build it back up. Having an emergency fund will help stop the cycle of paying down debt only to incur new debt.
Another key to getting out of debt is to put the idea of credit cards for an emergency out of your mind. If you have several credit cards I recommend cutting up all but one of them. As for the one you keep, do not carry it in your wallet or purse. It is just too easy to pull out the credit card and pay for something if you are carrying it on you. If you have left it at home you will need to make sure that you actually have the money to pay for something rather than just putting it on the card.
Next, it is important to set up a realistic budget and set spending limits for your variable expenses such as food, clothing, entertainment (this includes eating out), gasoline and haircuts. Once you have set your budget for these items go to the bank once a month and take out the allowed budget for these categories in cash. Use envelopes or some sort of organizer to keep the cash separated into each budget category. When you need a haircut, pay in cash from the haircut envelope, etc. But once you are out of money for the month you need to STOP SPENDING. Using cash and the envelope system is important because it makes us think about the money we are spending, but also acknowledges that you do need to spend some money. It is more effective to budget for what you will spend than to attempt to spend nothing. Attempting to spend nothing is much like fad dieting in that eventually you will fall off the wagon and go on a spending spree due to too much self-depravation.
If you follow these tactics you will have the best chance to get out of debt without bankruptcy. Once you have paid off any unsecured debt such as credit cards, medical bills, personal loans, etc., then work on adding to your emergency fund. You should really work to build your emergency fund to at least 6 months of your household expenses. At that point cancel the last credit card. Yep. It is possible to live without a credit card. I have done exactly this for years and it feels great. Anything that you might need a credit card to do can also be done with a debit card. And don't try to tell me that those points or air miles are better than not owing any money to a credit card company. As I once heard a bankruptcy judge in the Southern District of Indiana say there is a reason that they call it a "Master"card....it is because by owing money on a credit card you become a slave to your debt.
Hopefully this plan will work to help you get out of debt. But sometimes lawsuits, garnishments, long-term unemployment or medical conditions make it impossible to get out of debt using any method. If you find yourself in this situation and live in Indianapolis, Fishers, Carmel, Noblesville, Tipton, Zionsville, or anywhere else in Central Indiana I would be happy to speak with you to help you understand how bankruptcy works and whether it is a good idea for you or not. If you would like to meet with me for a free initial consultation call Halcomb Singler, LLP, at 317-575-8222.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses
Tuesday, August 16, 2011
How your Property is Titled Matters for Indiana Bankruptcy
It is often when meeting with potential clients at Halcomb Singler, LLP about bankruptcy that people tell me something to the effect of, "The car, bank account, etc., isn't mine...it's just in my name."
I cannot stress how important it is to consider the results prior to putting an asset or liability in your name or taking your name off of an asset. What I find that people forget is that if an asset is in your name you own it regardless of whether you "feel" that you own it. For example, if your name is on a bank account as an owner just so you can pay bills for your elderly mother in the even of an emergency you own that bank account. A creditor of yours may be able to attach that bank account even if you haven't put a dollar in the account. Similarly, if you put a vehicle in someone else's name it is their vehicle, not yours. The way that ownership of property is structured legally is very important and it is legal ownership that controls in bankruptcy.
In short, words mean things....and legal ownership means everything.
If you are considering filing bankruptcy it is important that you tell your attorney about any joint property, accounts, etc that are in your name and "aren't really yours" or any assets in another person's name that "really are yours." For example, the way that a home is owned by a married couple can be very important in bankruptcy. In Indiana if a husband and wife own their home by tenancy by the entireties and a judgment is taken against just one spouse then no judicial lien will attach to that real property. However, if the judgment is against both spouses then it will be necessary to move to remove the judicial lien in bankruptcy. If you are confused by this paragraph you are not alone. The impacts of legal ownership are complex and should be explained by a legal professional.
In short, it is very important to understand the pros and cons of how a home is deeded, how a bank account is held or how a vehicle is titled. Before setting up ownership make sure that you understand how the asset should be titled and don't be afraid to ask questions of the professional you are working with to set up that account or title that asset. If you don't feel that the professional really knows the answers to your questions wait to title the asset until you have sufficient answers to your questions. Even if it is not necessary for you to file bankruptcy, the ownership of assets can affect other aspects of life and should be carefully considered.
In almost all circumstances it is ill-advised to change legal ownership of assets or property on your own prior to the filing of bankruptcy, so make sure that you consult with an attorney prior to doing so (read more about what NOT to do if you are considering bankruptcy). If you are considering bankruptcy and are unsure how your joint ownership of property, an account, ect., would impact your Indiana bankruptcy feel free to contact me at 317-575-8222 or click here to fill out our potential client information sheet and we will contact you. There is no charge for this consultation. I am happy to answer your questions about bankruptcy as well as how your legal ownership of assets may impact your bankruptcy. In almost all circumstances it is ill-advised to change legal ownership of assets or property just prior to bankruptcy, so make sure that you meet with a bankruptcy attorney licensed in your state prior to making any such changes.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses
I cannot stress how important it is to consider the results prior to putting an asset or liability in your name or taking your name off of an asset. What I find that people forget is that if an asset is in your name you own it regardless of whether you "feel" that you own it. For example, if your name is on a bank account as an owner just so you can pay bills for your elderly mother in the even of an emergency you own that bank account. A creditor of yours may be able to attach that bank account even if you haven't put a dollar in the account. Similarly, if you put a vehicle in someone else's name it is their vehicle, not yours. The way that ownership of property is structured legally is very important and it is legal ownership that controls in bankruptcy.
In short, words mean things....and legal ownership means everything.
If you are considering filing bankruptcy it is important that you tell your attorney about any joint property, accounts, etc that are in your name and "aren't really yours" or any assets in another person's name that "really are yours." For example, the way that a home is owned by a married couple can be very important in bankruptcy. In Indiana if a husband and wife own their home by tenancy by the entireties and a judgment is taken against just one spouse then no judicial lien will attach to that real property. However, if the judgment is against both spouses then it will be necessary to move to remove the judicial lien in bankruptcy. If you are confused by this paragraph you are not alone. The impacts of legal ownership are complex and should be explained by a legal professional.
In short, it is very important to understand the pros and cons of how a home is deeded, how a bank account is held or how a vehicle is titled. Before setting up ownership make sure that you understand how the asset should be titled and don't be afraid to ask questions of the professional you are working with to set up that account or title that asset. If you don't feel that the professional really knows the answers to your questions wait to title the asset until you have sufficient answers to your questions. Even if it is not necessary for you to file bankruptcy, the ownership of assets can affect other aspects of life and should be carefully considered.
In almost all circumstances it is ill-advised to change legal ownership of assets or property on your own prior to the filing of bankruptcy, so make sure that you consult with an attorney prior to doing so (read more about what NOT to do if you are considering bankruptcy). If you are considering bankruptcy and are unsure how your joint ownership of property, an account, ect., would impact your Indiana bankruptcy feel free to contact me at 317-575-8222 or click here to fill out our potential client information sheet and we will contact you. There is no charge for this consultation. I am happy to answer your questions about bankruptcy as well as how your legal ownership of assets may impact your bankruptcy. In almost all circumstances it is ill-advised to change legal ownership of assets or property just prior to bankruptcy, so make sure that you meet with a bankruptcy attorney licensed in your state prior to making any such changes.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses
Saturday, August 13, 2011
Sometimes a Pay Cut Requires a Decrease in Standard of Living
Although I am not a big fan of cliches, one that I find to be true is...."the more money you make the more money you spend." So, it is no surprise that as people begin to make more money they spend it on things or services that improve their lifestyles. Examples are a housekeeper, swim club membership, personal trainer, organic produce delivery, etc. However, I have notice in meeting with potential clients at Halcomb Singler that one of the hardest things for people who have just suffered a significant decrease in income is to respond with a decrease in standard of living until that income can be replaced.
Unfortunately, all of us know someone who has been laid off recently. It is a very difficult job market and it can take quite some time before a person is able to land another job. Even more common it seem that the person lands a job making significantly less money than their prior job. This is the sad reality of what I am seeing even in an area as well-educated and traditionally well-off as Hamilton County, Indiana. I applaud those who have taken a lesser paying job in order to gain income. I believe it is always a good idea to take a job (even if it is less money than you used to make) because you can continue to look for a better-paying job while you are at least collecting a paycheck.
However, a trend that I am seeing with not only my clients, but friends, family and in general is that when there is a significant loss or decrease in income that people are continuing to live in the exact same way they did prior to the decrease in income because this is what they are used to doing. I am writing this blog not to lecture or cast blame, but because I truly believe this needs to be pointed out so that anyone reading in this situation can take stock and evaluate their own situation. For example, I recently had a family member lose his job and it happened to be the day before this person wanted to take my husband and myself out to a fairly expensive dinner. When I heard the news of the layoff I suggested that we cancel the reservations at the expensive restaurant and instead either cook dinner or go to a much less expensive dinner. Not only would my family member not agree to either of these options, he also refused to allow myself and my husband pay for any portion of the dinner!
All of us partake in buying things or services that we enjoy and are a great addition to our lives so long as we can afford them. I, for example, pay quite a bit to work out at a Crossfit gym where I really enjoy the classes and interacting with the other people who work out there. In addition, I feel that I am getting great workouts that will hopefully benefit me in the long-term through improved health and wellness into the future. However, I have no qualms about openly admitting that if my husband got laid off from his job tomorrow that I would have to cancel the crossfit gym membership. I would also cancel the cable, cancel the organic produce delivery, stop making contributions to my church, cook every meal at home and cut out all eating out. After I did that I would sit down and try to figure out where else I could cut out expenses.
Granted, my example is fairly extreme and depending on the amount of the decrease of income this amount of cutback may not be necessary. My point is that it is important to address the reality of the situation right away and make cuts. It is easy to tell yourself that you will be able to get another job again right away and that you don't need to make cuts. It is also easy to rely on the fact that you have a 6-8 month emergency fund (if you have this) and to use this as an excuse to avoid cuts. However, the sooner you take a hard look at what needs to go and understand that a significant decrease means you cannot afford to live the same way the better off you will be in the long run. Hopefully that income is replaced fairly quickly and you don't even have to dip into your emergency fund. However, if your job search takes months or even a year or more you will look back and be happy that you addressed making changes in your standard of living early rather than allowing all of your savings to go out the window on things or services you can live without.
If you live in the Indianapolis/Hamilton County, Tipton County, Boone County, Marion County area and are considering bankruptcy I am happy to meet with you. I will evaluate your financial situation and let you know whether or not I believe bankruptcy could assist you in getting back on your feet financially. To set up this free initial consultation please call me at Halcomb Singler, LLP, 317-575-8222.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses
Unfortunately, all of us know someone who has been laid off recently. It is a very difficult job market and it can take quite some time before a person is able to land another job. Even more common it seem that the person lands a job making significantly less money than their prior job. This is the sad reality of what I am seeing even in an area as well-educated and traditionally well-off as Hamilton County, Indiana. I applaud those who have taken a lesser paying job in order to gain income. I believe it is always a good idea to take a job (even if it is less money than you used to make) because you can continue to look for a better-paying job while you are at least collecting a paycheck.
However, a trend that I am seeing with not only my clients, but friends, family and in general is that when there is a significant loss or decrease in income that people are continuing to live in the exact same way they did prior to the decrease in income because this is what they are used to doing. I am writing this blog not to lecture or cast blame, but because I truly believe this needs to be pointed out so that anyone reading in this situation can take stock and evaluate their own situation. For example, I recently had a family member lose his job and it happened to be the day before this person wanted to take my husband and myself out to a fairly expensive dinner. When I heard the news of the layoff I suggested that we cancel the reservations at the expensive restaurant and instead either cook dinner or go to a much less expensive dinner. Not only would my family member not agree to either of these options, he also refused to allow myself and my husband pay for any portion of the dinner!
All of us partake in buying things or services that we enjoy and are a great addition to our lives so long as we can afford them. I, for example, pay quite a bit to work out at a Crossfit gym where I really enjoy the classes and interacting with the other people who work out there. In addition, I feel that I am getting great workouts that will hopefully benefit me in the long-term through improved health and wellness into the future. However, I have no qualms about openly admitting that if my husband got laid off from his job tomorrow that I would have to cancel the crossfit gym membership. I would also cancel the cable, cancel the organic produce delivery, stop making contributions to my church, cook every meal at home and cut out all eating out. After I did that I would sit down and try to figure out where else I could cut out expenses.
Granted, my example is fairly extreme and depending on the amount of the decrease of income this amount of cutback may not be necessary. My point is that it is important to address the reality of the situation right away and make cuts. It is easy to tell yourself that you will be able to get another job again right away and that you don't need to make cuts. It is also easy to rely on the fact that you have a 6-8 month emergency fund (if you have this) and to use this as an excuse to avoid cuts. However, the sooner you take a hard look at what needs to go and understand that a significant decrease means you cannot afford to live the same way the better off you will be in the long run. Hopefully that income is replaced fairly quickly and you don't even have to dip into your emergency fund. However, if your job search takes months or even a year or more you will look back and be happy that you addressed making changes in your standard of living early rather than allowing all of your savings to go out the window on things or services you can live without.
If you live in the Indianapolis/Hamilton County, Tipton County, Boone County, Marion County area and are considering bankruptcy I am happy to meet with you. I will evaluate your financial situation and let you know whether or not I believe bankruptcy could assist you in getting back on your feet financially. To set up this free initial consultation please call me at Halcomb Singler, LLP, 317-575-8222.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses
Wednesday, August 10, 2011
Indiana Bankruptcy and Adversary Proceedings
One thing that most people don't really understand about Indiana bankruptcy is an adversary proceeding. To put it simply, an adversary proceeding is a lawsuit filed in a bankruptcy case that asks the court to determine that a debt is or is not dischargeable. Most commonly an adversary proceeding is filed by a creditor who believes that his or her debt should survive bankruptcy because the debt was incurred through fraud, misrepresentation or due to willful and malicious injury. An adversary proceeding is a case affiliated with the underlying bankruptcy proceeding, but it is assigned an additional cause number. The adversary proceeding typically continues even after the debtor has received a discharge through the typical stages of litigation including discovery, dispositive motions, depositions and finally a trial, if necessary. Even if a debtor has filed his or her bankruptcy petition pro se without an attorney, a debtor who receives a complaint in an adversary proceeding will typically benefit from counsel in that adversary proceedings are complex and it would be very difficult for a non-attorney to navigate through the procedure of an adversary proceeding.
The reality is that most folks I meet with at Halcomb Singler, LLP, regarding bankruptcy are going to get through their bankruptcy proceeding without any creditor filing an adversary proceeding. Adversary proceedings are fairly rare because the burden is on the creditor to show why a debt should not be discharged in bankruptcy. In addition, it is expensive to hire an attorney to file and litigate an adversary proceeding. Creditors may also opt not to file an adversary proceeding because they do not want to throw good money after bad. After all, if a creditor wins an adversary proceeding it means that the debt has not been discharged in bankruptcy, but it does not magically cause the debtor to have the money to repay the debt. Often actually collecting a debt is the hardest part for a creditor.
As I stated earlier, most debtors are going to get through their bankruptcy proceeding and obtain a discharge without the filing of an adversary proceeding. In fact, a bankruptcy attorney will typically be able to tell whether there is much likelihood of the filing of an adversary proceeding after you tell him or her the story of what led you to make an appointment with a bankruptcy attorney. However, in my opinion debtors should understand that something called an adversary proceeding exists and understand that defense of an adversary proceeding is typically not included in the flat fee charged by most bankruptcy attorneys.
If you are contemplating bankruptcy, live in central Indiana/Indianapolis and surrounding areas and would like to meet regarding whether or not Chapter 7 or Chapter 13 Bankruptcy would be beneficial to your situation please call 317-575-8222 for a free initial consultation. Halcomb Singler also represents both creditors and debtors in adversary proceedings in bankruptcy court.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses
The reality is that most folks I meet with at Halcomb Singler, LLP, regarding bankruptcy are going to get through their bankruptcy proceeding without any creditor filing an adversary proceeding. Adversary proceedings are fairly rare because the burden is on the creditor to show why a debt should not be discharged in bankruptcy. In addition, it is expensive to hire an attorney to file and litigate an adversary proceeding. Creditors may also opt not to file an adversary proceeding because they do not want to throw good money after bad. After all, if a creditor wins an adversary proceeding it means that the debt has not been discharged in bankruptcy, but it does not magically cause the debtor to have the money to repay the debt. Often actually collecting a debt is the hardest part for a creditor.
As I stated earlier, most debtors are going to get through their bankruptcy proceeding and obtain a discharge without the filing of an adversary proceeding. In fact, a bankruptcy attorney will typically be able to tell whether there is much likelihood of the filing of an adversary proceeding after you tell him or her the story of what led you to make an appointment with a bankruptcy attorney. However, in my opinion debtors should understand that something called an adversary proceeding exists and understand that defense of an adversary proceeding is typically not included in the flat fee charged by most bankruptcy attorneys.
If you are contemplating bankruptcy, live in central Indiana/Indianapolis and surrounding areas and would like to meet regarding whether or not Chapter 7 or Chapter 13 Bankruptcy would be beneficial to your situation please call 317-575-8222 for a free initial consultation. Halcomb Singler also represents both creditors and debtors in adversary proceedings in bankruptcy court.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses
Friday, August 5, 2011
Loans secured by household furnishings and Indiana Bankruptcy
Before potential clients pick up the phone and call Halcomb Singler, LLP, to talk about the potential of bankruptcy they have typically explored and exhausted any potential debt solution possible. In this process it is not uncommon for me to meet with someone who has put up their home furnishings for collateral on a loan. Understandably, people are scared that if they can't pay the loan payment or file bankruptcy that a truck is going to pull up to their home one day and take all of their furniture away.
It is true that you can put up your home furnishings as collateral for a loan. I don't recommend this, but I don't recommend loans in general. I do understand that sometimes desperate times call for desperate measures and sometimes that means people take out a loan and put household furnishings up as collateral. When you sign an agreement where the lender takes your household furnishings as collateral it means that the lender can repossess your furniture if you default on the loan.
Bankruptcy debtors have "tools" that can be used in bankruptcy to put them in a much better position at the end of the bankruptcy than when they initially filed. One of these "tools" is the ability to remove liens as to household goods and furnishings. In short, this means that you can remove the lender's ability to take your furniture even though you did not pay back the loan.
For example, lets say that Bill and Heather have taken out a loan for $2,000.00 for which they agreed to put up their television and couch as collateral. Bill and Heather find themselves in a position 6 months later that forces them to file a Chapter 7 bankruptcy petition. Bankruptcy code section 522(f) allows the debtors to file a motion to avoid the fixing of a lien on an interest in their property to the extent that such lien impairs an exemption to which the debtor would have been entitled if such lien is for a nonpossessory, nonpurchase-money security interest in household furnishings. So, what the heck does that mean?
It means that if Bill and Heather already owned their television and couch outright at the time they took a personal loan and the couch and loan fit within the $18,700.00 in exemptions that Bill and Heather are currently allowed to claim in Indiana then they can file a motion to avoid the lien on their household furnishings and so long as it is granted by the Court their furniture is no longer collateral for the loan even though they didn't pay the loan and the debt is discharged in bankruptcy.
While this explanation is admittedly an oversimplification, the point is that there may be things that can be done in bankruptcy to help you get off to a fresh start that you have never considered. Don't assume that bankruptcy just erases debts. Bankruptcy is a very complex process in which one action can affect many other aspects of the filing of a bankruptcy petition. In addition, bankruptcy is a very powerful way for debtors to move forward financially and it is necessary to meet with a bankruptcy attorney to fully understand your options. If you are living in Hamilton County, Marion County, Boone County, Madison County, Hendricks County, Tipton County or Howard County and you would like to sit down for a free initial consultation to understand whether bankruptcy is a viable option to solve your debt problems call Halcomb Singler at 317-575-8222 or click here to fill out our contact form.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses
It is true that you can put up your home furnishings as collateral for a loan. I don't recommend this, but I don't recommend loans in general. I do understand that sometimes desperate times call for desperate measures and sometimes that means people take out a loan and put household furnishings up as collateral. When you sign an agreement where the lender takes your household furnishings as collateral it means that the lender can repossess your furniture if you default on the loan.
Bankruptcy debtors have "tools" that can be used in bankruptcy to put them in a much better position at the end of the bankruptcy than when they initially filed. One of these "tools" is the ability to remove liens as to household goods and furnishings. In short, this means that you can remove the lender's ability to take your furniture even though you did not pay back the loan.
For example, lets say that Bill and Heather have taken out a loan for $2,000.00 for which they agreed to put up their television and couch as collateral. Bill and Heather find themselves in a position 6 months later that forces them to file a Chapter 7 bankruptcy petition. Bankruptcy code section 522(f) allows the debtors to file a motion to avoid the fixing of a lien on an interest in their property to the extent that such lien impairs an exemption to which the debtor would have been entitled if such lien is for a nonpossessory, nonpurchase-money security interest in household furnishings. So, what the heck does that mean?
It means that if Bill and Heather already owned their television and couch outright at the time they took a personal loan and the couch and loan fit within the $18,700.00 in exemptions that Bill and Heather are currently allowed to claim in Indiana then they can file a motion to avoid the lien on their household furnishings and so long as it is granted by the Court their furniture is no longer collateral for the loan even though they didn't pay the loan and the debt is discharged in bankruptcy.
While this explanation is admittedly an oversimplification, the point is that there may be things that can be done in bankruptcy to help you get off to a fresh start that you have never considered. Don't assume that bankruptcy just erases debts. Bankruptcy is a very complex process in which one action can affect many other aspects of the filing of a bankruptcy petition. In addition, bankruptcy is a very powerful way for debtors to move forward financially and it is necessary to meet with a bankruptcy attorney to fully understand your options. If you are living in Hamilton County, Marion County, Boone County, Madison County, Hendricks County, Tipton County or Howard County and you would like to sit down for a free initial consultation to understand whether bankruptcy is a viable option to solve your debt problems call Halcomb Singler at 317-575-8222 or click here to fill out our contact form.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses
Monday, August 1, 2011
Can you afford to be an Indiana Landlord?
Now that it seems you can purchase a decent rental property for less than a Honda Accord in Indiana, many clients at Halcomb Singler, LLP, are interested in becoming landlords. On the other hand, I am also seeing many people filing bankruptcy who are doing it in large part due to the expense of owning rental properties. So, I wanted to write an article about a few things I don't believe people consider before purchasing a home to rent out. Here are my Top 10 Factors to Consider or Do before becoming a landlord:
1. Make sure you can afford to make both your mortgage payment and the rental property payment;
2. Make sure you can afford to repair the home each time a renter moves out and don't assume the security deposit will cover the repairs/cleaning;
3. Have an attorney prepare a lease agreement for your rental;
4. Do your homework on your renter;
5. Consider whether you should create a legal entity for your rental property business;
6. Consider whether you have tough enough skin;
7. Know what your lease agreement says;
8. Are you willing to take the 3a.m. telephone call?;
9. Understand your responsibilities as a landlord when the tenant moves out;
10. Find out about the eviction process. Are you willing to do this?
1. The number one consideration should be can you afford it? By this I mean that you cannot count on renters to make timely payments (or to make payments at all for that matter). So, if you are considering purchasing a rental property make sure that you can afford to make the payments for an extended period of time if the renter fails to do so or if the property sits without a renter for an extended time;
2. Make sure you have the funds to repair a property after a renter moves out. I am not just talking about a shampoo cleaning of the carpet and some paint touch-ups. Unfortunately, some renters will have no respect for your rental property and will do things like put holes in walls, break appliances and generally fail to clean for what looks like years. Don't assume their security deposit will cover it. Make sure you have some cash reserves to pay for repairs;
3. Please, please, please do not print a lease agreement from the internet or borrow one from a friend who owns a rental property. This is a really bad idea. The lease agreement states the rights and responsibilities of either party and it is of the utmost importance in your landlord/tenant relationship. I have seen clients with terrible lease agreement that did not afford them the right to recover attorney fees or costs of collection. Some lease agreements will state a preferred venue that is not even in the same state. The bottom line is that an attorney can draft a lease agreement that is specific to your situation. I know most people don't want to pay an attorney to draft a lease, but in the realm of attorney charges this is a low cost and it could very well pay for itself in the event you have to evict a tenant....sorry, by if you have to evict a tenant I mean when you have to evict a tenant;
4. Make sure you check out your renter! The difference between loving your new role as a landlord and hating it is the renter. Some renters will pay a day early each month and leave the rental spotless when they move. Other renters will pay 7 days late each month and move out in the middle of the night after trashing the place. One easy way to help minimize your chances of having a bad renter is to have them complete a rental application...but don't stop there. You could also ask them to provide a recent credit report. In addition, many counties have civil court dockets online. I always encourage landlords to look up the last name of their potential renter in Hamilton County, Indiana. On more than one occasion a landlord has looked up a potential tenant only to find out that they had been evicted several times in the past year. Although there are never any guarantees, the more financially stable your renter the more likely you will receive your rent on time and have a great rental experience;
5. I recommend that you meet with an attorney to see whether you need to set up a business entity to protect yourself from personal liability. The pros and cons of this are beyond the scope of this article, but it is something you really need to sit down and discuss with your attorney;
6. Think about whether you can really handle being a landlord. Landlords often have to make tough decisions, such as to evict a family with nowhere else to go due to an illness or to evict a widow who lived on her late husband's pension who could no longer afford to pay the rent. As a landlord you will likely hear many stories of hardship. Some of these stories will be true and some will be untrue. However, unless you are in the market to run a charitable organization you will have to be willing to put your foot down if the rent isn't getting paid;
7. Once you have had a lease agreement drafted, know what it says. If you don't understand have your attorney explain it. At the very least you should know when the rent is due, what is the term of the lease, when is the rent late, what is the late fee and when, if at all, you have the right to inspect the property;
8. One of the greatest benefits to being a renter is that you don't have to deal with home maintenance, you just call the landlord. So, consider whether you are willing to take the 3a.m. telephone call about the hot water heater leaking and flooding the basement. I can say from my personal experience that this was my deal-breaker. My husband is in the military and was interested in purchasing a rental property. However, I am not willing to take calls in the middle of the night (or really during the day) from renters when he is deployed overseas. I also didn't want to have to worry about whether the rent was being paid or field a call about a clogged toilet, etc.;
9. When a tenant moves out at the end of their lease a landlord will have certain responsibilities. In Indiana a landlord has a specific number of days to either return the security deposit or give the tenant an itemized list of the damages/charges for the difference. Failure to do this can result in major costs for the landlord. Again, it is important to meet with an attorney to know what you should do when your tenant moves out;
10. The eviction process differs from state to state and even somewhat from county to county. Find out how the eviction process works in your state. For example, in Hamilton County it is probably going to take about three (3) weeks on average to get someone out of your rental. The judge will typically not order a renter out the minute they leave the court proceeding, but will give them about five (5) days to pack up and move out. And there may be a second hearing set at a later date to determine what, if any, damages there are to the property for which the renter should be responsible. In addition, you will need to go to Court. In some situations you may be required to have an attorney represent you in Court and there is a chance that your renter could turn around and countersue you for something whether it be warranted or unwarranted. If the idea of testifying in front of a judge makes you shake in your boots being a landlord is probably not for you.
If you follow the top 10 list it should help your rental experience. However, many people are currently sitting on many rental properties that they can't rent for the amount of the mortgage, that they can't rent for whatever reason or have bad tenants. I have met with many people regarding their rental properties for whom it makes sense to file a bankruptcy to surrender the properties because they are losing money, causing stress and there is no end in sight. If you would like to meet with me because your rental properties are causing serious financial hardship in your life and you live in Indianapolis, Carmel, Noblesville, Fishers, Zionsville, or any of the surrounding areas feel free to contact Halcomb Singler at 317-575-8222.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses
1. Make sure you can afford to make both your mortgage payment and the rental property payment;
2. Make sure you can afford to repair the home each time a renter moves out and don't assume the security deposit will cover the repairs/cleaning;
3. Have an attorney prepare a lease agreement for your rental;
4. Do your homework on your renter;
5. Consider whether you should create a legal entity for your rental property business;
6. Consider whether you have tough enough skin;
7. Know what your lease agreement says;
8. Are you willing to take the 3a.m. telephone call?;
9. Understand your responsibilities as a landlord when the tenant moves out;
10. Find out about the eviction process. Are you willing to do this?
1. The number one consideration should be can you afford it? By this I mean that you cannot count on renters to make timely payments (or to make payments at all for that matter). So, if you are considering purchasing a rental property make sure that you can afford to make the payments for an extended period of time if the renter fails to do so or if the property sits without a renter for an extended time;
2. Make sure you have the funds to repair a property after a renter moves out. I am not just talking about a shampoo cleaning of the carpet and some paint touch-ups. Unfortunately, some renters will have no respect for your rental property and will do things like put holes in walls, break appliances and generally fail to clean for what looks like years. Don't assume their security deposit will cover it. Make sure you have some cash reserves to pay for repairs;
3. Please, please, please do not print a lease agreement from the internet or borrow one from a friend who owns a rental property. This is a really bad idea. The lease agreement states the rights and responsibilities of either party and it is of the utmost importance in your landlord/tenant relationship. I have seen clients with terrible lease agreement that did not afford them the right to recover attorney fees or costs of collection. Some lease agreements will state a preferred venue that is not even in the same state. The bottom line is that an attorney can draft a lease agreement that is specific to your situation. I know most people don't want to pay an attorney to draft a lease, but in the realm of attorney charges this is a low cost and it could very well pay for itself in the event you have to evict a tenant....sorry, by if you have to evict a tenant I mean when you have to evict a tenant;
4. Make sure you check out your renter! The difference between loving your new role as a landlord and hating it is the renter. Some renters will pay a day early each month and leave the rental spotless when they move. Other renters will pay 7 days late each month and move out in the middle of the night after trashing the place. One easy way to help minimize your chances of having a bad renter is to have them complete a rental application...but don't stop there. You could also ask them to provide a recent credit report. In addition, many counties have civil court dockets online. I always encourage landlords to look up the last name of their potential renter in Hamilton County, Indiana. On more than one occasion a landlord has looked up a potential tenant only to find out that they had been evicted several times in the past year. Although there are never any guarantees, the more financially stable your renter the more likely you will receive your rent on time and have a great rental experience;
5. I recommend that you meet with an attorney to see whether you need to set up a business entity to protect yourself from personal liability. The pros and cons of this are beyond the scope of this article, but it is something you really need to sit down and discuss with your attorney;
6. Think about whether you can really handle being a landlord. Landlords often have to make tough decisions, such as to evict a family with nowhere else to go due to an illness or to evict a widow who lived on her late husband's pension who could no longer afford to pay the rent. As a landlord you will likely hear many stories of hardship. Some of these stories will be true and some will be untrue. However, unless you are in the market to run a charitable organization you will have to be willing to put your foot down if the rent isn't getting paid;
7. Once you have had a lease agreement drafted, know what it says. If you don't understand have your attorney explain it. At the very least you should know when the rent is due, what is the term of the lease, when is the rent late, what is the late fee and when, if at all, you have the right to inspect the property;
8. One of the greatest benefits to being a renter is that you don't have to deal with home maintenance, you just call the landlord. So, consider whether you are willing to take the 3a.m. telephone call about the hot water heater leaking and flooding the basement. I can say from my personal experience that this was my deal-breaker. My husband is in the military and was interested in purchasing a rental property. However, I am not willing to take calls in the middle of the night (or really during the day) from renters when he is deployed overseas. I also didn't want to have to worry about whether the rent was being paid or field a call about a clogged toilet, etc.;
9. When a tenant moves out at the end of their lease a landlord will have certain responsibilities. In Indiana a landlord has a specific number of days to either return the security deposit or give the tenant an itemized list of the damages/charges for the difference. Failure to do this can result in major costs for the landlord. Again, it is important to meet with an attorney to know what you should do when your tenant moves out;
10. The eviction process differs from state to state and even somewhat from county to county. Find out how the eviction process works in your state. For example, in Hamilton County it is probably going to take about three (3) weeks on average to get someone out of your rental. The judge will typically not order a renter out the minute they leave the court proceeding, but will give them about five (5) days to pack up and move out. And there may be a second hearing set at a later date to determine what, if any, damages there are to the property for which the renter should be responsible. In addition, you will need to go to Court. In some situations you may be required to have an attorney represent you in Court and there is a chance that your renter could turn around and countersue you for something whether it be warranted or unwarranted. If the idea of testifying in front of a judge makes you shake in your boots being a landlord is probably not for you.
If you follow the top 10 list it should help your rental experience. However, many people are currently sitting on many rental properties that they can't rent for the amount of the mortgage, that they can't rent for whatever reason or have bad tenants. I have met with many people regarding their rental properties for whom it makes sense to file a bankruptcy to surrender the properties because they are losing money, causing stress and there is no end in sight. If you would like to meet with me because your rental properties are causing serious financial hardship in your life and you live in Indianapolis, Carmel, Noblesville, Fishers, Zionsville, or any of the surrounding areas feel free to contact Halcomb Singler at 317-575-8222.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses
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