Although I don't believe getting out of debt is likely the most popular New Years resolution, it can't be too far behind losing weight. Many folks take advantage of this time of year after the holidays to reign in spending and to concentrate on knocking out debt. If this is your resolution this year, good for you. Unfortunately, we all know how poorly most of us are at keeping resolutions. I typically don't even make New Years resolutions because I don't want to set myself up for failure. But this year I am going to make some resolutions. While my resolutions don't revolve around debt, I think it is important to have a plan regarding how you are going to achieve any goal (after all resolutions are really just goals). If you want to read more about the best strategy to get out of debt check out my previous blog posting on the best methods to pay down debt.
So let me fill you in on my goals for 2012:
1. Meet with or have lunch with at least two people per month. Ideally, these would be people who I do not know well and I can use the opportunity to learn about them as well as their occupation.
2. Continue to Learn in order to be the best attorney possible by dedicating at least 4 hours per month to reading new caselaw, articles, publications, ect., which focus on bankruptcy law in Indiana. It is true that bankruptcy law is constantly changing through court decisions and new rules. In order to be the best bankruptcy attorney that I can be it is important to stay on top of the changes.
3. To post at least one entry to this blog per week. As time goes on it gets more and more challenging for me to think of blog topics that are interesting to my readers. I would appreciate any feedback regarding topics you would like me to address in a blog posting....but even if I don't get any feedback, goal #2 should help me think of new and helpful postings worthwhile to my readers.
4. Make sure I am using technology to the fullest. In the practice of law technology is not always king. In fact, attorneys are known for their ignorance of the latest technology. I am determined to take advantage of any technology that would aid my clients by making it easier to gather the information necessary to file bankruptcy.
5. Begin posting video clips on the Halcomb Singler website or on this blog that talk about different bankruptcy issues. I have wanted to do this for some time, but always find it difficult to set aside the time to devote to making and posting a video. Just so I am accountable on this I will add that my first video should be posted no later than the end of April.
Now that I look at them in writing, my goals are fairly simple. They don't take much planning, but do take quite a bit of time, which is a very finite resource for me as an attorney. For those of you whose resolutions deal with I suggest you tackle the task by making a realistic budget that doesn't cut out all entertainment, clothing, eating out, etc. Make sure you are realistic so that you can stick to the budget. Then read the best methods to pay down debt blog referenced earlier. Once you have determined which method you would like to use, start making the extra payment(s). If you don't have enough income in your budget, then get another job or jobs (yes I said jobs) so that you have enough income to effectuate your plan.
If you have done everything you can think of each year to get out of debt and have put your plan into action as I have described and you are still swimming in debt it may be the time to speak with an Indiana Bankruptcy Attorney. If you are receiving lawsuits for unpaid debts I would recommend you speak to a bankruptcy attorney located in your area. If you live in Indianapolis, Carmel, Fishers, Tipton, Zionsville, Noblesville, or the surrounding areas and would like to meet with me to discuss bankruptcy options just give me a call at (317) 575-8222. There is no fee for the initial consultation and I will give you my legal opinion regarding whether bankruptcy would help you (bankruptcy is not a good option for all people with debt issues) and answer your questions regarding bankruptcy.
Happy New Years everyone! I hope 2012 is filled with blessings for you and your families. Make it a great year.
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, December 28, 2011
Tuesday, December 20, 2011
If I Had Money to Pay an Attorney I Wouldn't Need to File Bankruptcy
Every profession has a phrase they hear....a lot. I imagine that car mechanics often hear that the car should not break down after only 40, 50, 60k miles, that bankers receive complaints about overdraft fees, that accountants hear that tax bills are too high....and bankruptcy attorneys are often asked how people afford to pay for a bankruptcy attorney when they do not have enough money to pay their bills.
It is a valid question and one that I have not discussed in detail on my blog....so here goes. I would say that there are three ways that people most often find money to hire a bankruptcy attorney:
1. Income tax refund;
2. Family members;
3. Extra money from not paying credit card/medical bills.
Income tax refund is self-explanatory. For many folks, an income tax refund is a once a year late Christmas. It has been my experience that many people use this lump sum of money to attempt to pay off credit cards, medical bills or car loans. I think that paying down debt is an excellent use of a tax refund for most people. However, for those out there who have reached the end of their financial rope attempting to get out of debt for years with nothing to show for it a tax refund is an excellent way to pay for bankruptcy. So, as tax season creeps up on us again keep your refund in mind as a way to pay down debt or eliminate most debts through Chapter 7 bankruptcy.
Another means I have seen people use to pay a bankruptcy attorney is through family. Often a family member has seen their loved one struggle with debt over a long period of time and wants to help them obtain a fresh start through bankruptcy. I have also seen situations where family members offer to pay a certain sum of money to settle debts or to pay for bankruptcy attorney/filing fees; whichever my client would prefer.
Finally, and probably most commonly, is for the person(s) filing bankruptcy to pay the attorney fees through a payment arrangement with the bankruptcy attorney. Once a person has met with a bankruptcy attorney and made the decision to file bankruptcy he or she will typically stop paying credit card, medical and other unsecured debts (I would not recommend stopping payment on your debt without first consulting with a bankruptcy attorney). Once the client has stopped paying on these monthly debts they have freed up some money to pay the attorney. This can take several months, but many bankruptcy attorneys will accept payment over a period of time.
So I have answered the age-old question of how someone with no money can possibly pay for a bankruptcy attorney......but I know that I will still hear the question at my law firm, Halcomb Singler, LLP....and that is fine with me. I understand that bankruptcy is a scary and unfamiliar process, which is why people call me. I do not expect you to know anything about bankruptcy just as I may know nothing about your profession, but I am happy to answer your questions in a free initial consultation if you are living in Carmel, Noblesville, Zionsville, Fishers, Tipton, Kokomo or the Indianapolis area. Just click here to enter your information if you would like to set up an appointment.
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 a valid question and one that I have not discussed in detail on my blog....so here goes. I would say that there are three ways that people most often find money to hire a bankruptcy attorney:
1. Income tax refund;
2. Family members;
3. Extra money from not paying credit card/medical bills.
Income tax refund is self-explanatory. For many folks, an income tax refund is a once a year late Christmas. It has been my experience that many people use this lump sum of money to attempt to pay off credit cards, medical bills or car loans. I think that paying down debt is an excellent use of a tax refund for most people. However, for those out there who have reached the end of their financial rope attempting to get out of debt for years with nothing to show for it a tax refund is an excellent way to pay for bankruptcy. So, as tax season creeps up on us again keep your refund in mind as a way to pay down debt or eliminate most debts through Chapter 7 bankruptcy.
Another means I have seen people use to pay a bankruptcy attorney is through family. Often a family member has seen their loved one struggle with debt over a long period of time and wants to help them obtain a fresh start through bankruptcy. I have also seen situations where family members offer to pay a certain sum of money to settle debts or to pay for bankruptcy attorney/filing fees; whichever my client would prefer.
Finally, and probably most commonly, is for the person(s) filing bankruptcy to pay the attorney fees through a payment arrangement with the bankruptcy attorney. Once a person has met with a bankruptcy attorney and made the decision to file bankruptcy he or she will typically stop paying credit card, medical and other unsecured debts (I would not recommend stopping payment on your debt without first consulting with a bankruptcy attorney). Once the client has stopped paying on these monthly debts they have freed up some money to pay the attorney. This can take several months, but many bankruptcy attorneys will accept payment over a period of time.
So I have answered the age-old question of how someone with no money can possibly pay for a bankruptcy attorney......but I know that I will still hear the question at my law firm, Halcomb Singler, LLP....and that is fine with me. I understand that bankruptcy is a scary and unfamiliar process, which is why people call me. I do not expect you to know anything about bankruptcy just as I may know nothing about your profession, but I am happy to answer your questions in a free initial consultation if you are living in Carmel, Noblesville, Zionsville, Fishers, Tipton, Kokomo or the Indianapolis area. Just click here to enter your information if you would like to set up an appointment.
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, December 6, 2011
Can I Keep a Rental/Vacation House if I file Bankruptcy in Indiana?
Unlike the common perception, many people who are in need of bankruptcy protection have assets. In this housing market I often meet with potential bankruptcy clients at Halcomb Singler who own several houses. It is not uncommon for people to be financially overwhelmed by several rental properties that they are no longer able to rent out at a price that covers the mortgage payment. Others purchased a second home during the housing boom and have now found it difficult to make the mortgage payment on the second property due to the economic downturn. Many potential clients make an appointment because they have received a mortgage foreclosure lawsuit on one of their properties due to a bad renter failing to pay them rent or simply not being able to rent out the property.
Most people I meet with at Halcomb Singler who have more than one home are surprised to hear that there is any chance that they may be able to keep the additional properties. Most of the potential clients I meet with assume that if they file for bankruptcy protection that they will be left with nothing more than the clothes on their backs. This is far from the truth and there are many circumstances in which additional real estate may be retained by a bankruptcy debtor after bankruptcy. However, there are also times where a trustee would object to the debtor retaining additional real estate. Only a bankruptcy lawyer practicing in your district who has met with you to review you case can give you an educated answer, but I will attempt a general discussion regarding the topic.
The analysis regarding a potential debtor being able to retain a second (or third, etc.) property in bankruptcy is really two-fold. The first analysis is whether there are enough exemptions to cover the equity in these additional properties and the second is whether the property is an economic drain.
First, if you own 5 houses outright Chapter 7 bankruptcy is probably not for you. When you file a chapter 7 bankruptcy you are only allowed to have so much equity in houses. In Indiana a married couple filing a bankruptcy may have $35,200.00 in equity in their residence that is exempt from creditors and may have an additional $18,700 in other tangible exemptions, which means equity in non-residental properties and other "stuff" such as your car, household goods, furnishings, jewelry. (These exemptions vary from state to state and only apply to those living and filing bankruptcy in Indiana). However, if you have your primary residence with $10,000.00 in equity and two other rental properties with little to no equity you have passed the first inquiry and may be able to keep them after bankruptcy a Chapter 7 bankruptcy.
If you file a Chapter 13 bankruptcy in Indiana the same exemptions as listed above apply. However, in a Chapter 13 bankruptcy since you make payments to the bankruptcy trustee over 3 to 5 years, so long as your creditors receive more money through your Chapter 13 repayment plan than they would have if you had filed a Chapter 7 bankruptcy and the trustee had liquidated your assets, it is unlikely that your additional equity will cause you to lose these assets through bankruptcy. This test is commonly referred to as "the best interests of creditors test."
If you have met the first inquiry regarding equity in the properties, the second stage of this analysis applies in either a Chapter 7 or a Chapter 13 bankruptcy case and is basically whether it is a good business decision for you to keep each property. If the property "cash flows," meaning that you making more off of each property each month for than it costs for the mortgage, property expenses, and maintenance expenses than that excess income will simply be added to your income in the bankruptcy and you will likely be able to keep the properties if you want. However, if you are having to take a few hundred dollars a month from your other income to keep your rental properties afloat each month, it is likely that the trustee would object to you keeping the properties.
I cannot stress enough that this is an oversimplified explanation of a complex bankruptcy issue. It is always good to meet with a bankruptcy attorney in your area to go over the specifics of your case. If you are stressing out over your financial situation and live in Carmel, Zionsville, Indianapolis, Westfield, Noblesville, Tipton, Kokomo, or anywhere else in central Indiana and would like to talk over your situation give Halcomb Singler a call at 317-575-8222 or click here.
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.
Most people I meet with at Halcomb Singler who have more than one home are surprised to hear that there is any chance that they may be able to keep the additional properties. Most of the potential clients I meet with assume that if they file for bankruptcy protection that they will be left with nothing more than the clothes on their backs. This is far from the truth and there are many circumstances in which additional real estate may be retained by a bankruptcy debtor after bankruptcy. However, there are also times where a trustee would object to the debtor retaining additional real estate. Only a bankruptcy lawyer practicing in your district who has met with you to review you case can give you an educated answer, but I will attempt a general discussion regarding the topic.
The analysis regarding a potential debtor being able to retain a second (or third, etc.) property in bankruptcy is really two-fold. The first analysis is whether there are enough exemptions to cover the equity in these additional properties and the second is whether the property is an economic drain.
First, if you own 5 houses outright Chapter 7 bankruptcy is probably not for you. When you file a chapter 7 bankruptcy you are only allowed to have so much equity in houses. In Indiana a married couple filing a bankruptcy may have $35,200.00 in equity in their residence that is exempt from creditors and may have an additional $18,700 in other tangible exemptions, which means equity in non-residental properties and other "stuff" such as your car, household goods, furnishings, jewelry. (These exemptions vary from state to state and only apply to those living and filing bankruptcy in Indiana). However, if you have your primary residence with $10,000.00 in equity and two other rental properties with little to no equity you have passed the first inquiry and may be able to keep them after bankruptcy a Chapter 7 bankruptcy.
If you file a Chapter 13 bankruptcy in Indiana the same exemptions as listed above apply. However, in a Chapter 13 bankruptcy since you make payments to the bankruptcy trustee over 3 to 5 years, so long as your creditors receive more money through your Chapter 13 repayment plan than they would have if you had filed a Chapter 7 bankruptcy and the trustee had liquidated your assets, it is unlikely that your additional equity will cause you to lose these assets through bankruptcy. This test is commonly referred to as "the best interests of creditors test."
If you have met the first inquiry regarding equity in the properties, the second stage of this analysis applies in either a Chapter 7 or a Chapter 13 bankruptcy case and is basically whether it is a good business decision for you to keep each property. If the property "cash flows," meaning that you making more off of each property each month for than it costs for the mortgage, property expenses, and maintenance expenses than that excess income will simply be added to your income in the bankruptcy and you will likely be able to keep the properties if you want. However, if you are having to take a few hundred dollars a month from your other income to keep your rental properties afloat each month, it is likely that the trustee would object to you keeping the properties.
I cannot stress enough that this is an oversimplified explanation of a complex bankruptcy issue. It is always good to meet with a bankruptcy attorney in your area to go over the specifics of your case. If you are stressing out over your financial situation and live in Carmel, Zionsville, Indianapolis, Westfield, Noblesville, Tipton, Kokomo, or anywhere else in central Indiana and would like to talk over your situation give Halcomb Singler a call at 317-575-8222 or click here.
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, December 2, 2011
If you need to file bankruptcy STOP using credit
Many of the potential clients that come to meet with me at Halcomb Singler used a credit card to put gas in their car to get to my office, during their last trip to the grocery store and maybe even for their electric bill. I get it. No one I have ever met with has been out buying big screen televisions or taking a 7 day cruise the week before they meet with me. Most folks considering bankruptcy are just trying to survive financially, and for many of them that means putting everyday living expenses like gas, groceries and utilities on a credit card.
There is nothing wrong with using a credit card for these things. However, at the end of that initial meeting if the potential client tells me that they definitely would like to file bankruptcy one of the first things I do is tell them to stop using credit. This makes many people very nervous. Many have been using credit cards to get by for some time and are afraid that they will not be able to make it from paycheck to paycheck without using credit to fill the gaps.
However, the bankruptcy code dictates if credit is used too close to the filing of a bankruptcy petition that the debt may not be dischargeable. Bankruptcy code section 11 section 523(a)(2)(C)(1)(i) et seq., states that a discharge of bankruptcy does not discharge an individual debtor from any consumer debts owed to a single creditor and aggregating more than $600.00 for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable. In addition, cash advances aggregating more than $875.00 that are extension of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relif under this title are presumet o be non-dischargeable.
So what does this mean? It means that if you buy a good or service not reasonably necessary for you or your family on credit that costs more than $600.00 or take a cash advance of $875.00 or more 70 days prior to filing bankruptcy that theses debts are presumed to survive bankruptcy. The easy way to make sure that you aren't stuck with a debt after bankruptcy due because it was deemed to be a luxury is to stop using credit once you have decided to file a bankruptcy.
In addition to being the right thing to do, stopping your use of credit will help you decide how to live your life after bankruptcy, which is really the most important part. What I mean is that many people realize when they stop using credit that they should surrender a car or house that they really cannot afford. Others realize that they are eating out too much. Some realize that they really can afford their house and cars and that it has been the debt payments on credit cards, medical bills, etc., that is causing their financial hardship. Stopping your use of credit will allow you to create an accurate budget based on the reality of your income and will put you on the path to financial success after bankruptcy because how will you ever know what you can actually afford until you stop using credit?
For those who live in Carmel, Indianapolis, Fishers, Noblesvile, Zionsville and the surrounding areas. Halcomb Singler does offer a free initial consultation to discuss bankruptcy. If you would like to schedule an appointment contact us at 317-575-8222 or click here.
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.
There is nothing wrong with using a credit card for these things. However, at the end of that initial meeting if the potential client tells me that they definitely would like to file bankruptcy one of the first things I do is tell them to stop using credit. This makes many people very nervous. Many have been using credit cards to get by for some time and are afraid that they will not be able to make it from paycheck to paycheck without using credit to fill the gaps.
However, the bankruptcy code dictates if credit is used too close to the filing of a bankruptcy petition that the debt may not be dischargeable. Bankruptcy code section 11 section 523(a)(2)(C)(1)(i) et seq., states that a discharge of bankruptcy does not discharge an individual debtor from any consumer debts owed to a single creditor and aggregating more than $600.00 for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable. In addition, cash advances aggregating more than $875.00 that are extension of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relif under this title are presumet o be non-dischargeable.
So what does this mean? It means that if you buy a good or service not reasonably necessary for you or your family on credit that costs more than $600.00 or take a cash advance of $875.00 or more 70 days prior to filing bankruptcy that theses debts are presumed to survive bankruptcy. The easy way to make sure that you aren't stuck with a debt after bankruptcy due because it was deemed to be a luxury is to stop using credit once you have decided to file a bankruptcy.
In addition to being the right thing to do, stopping your use of credit will help you decide how to live your life after bankruptcy, which is really the most important part. What I mean is that many people realize when they stop using credit that they should surrender a car or house that they really cannot afford. Others realize that they are eating out too much. Some realize that they really can afford their house and cars and that it has been the debt payments on credit cards, medical bills, etc., that is causing their financial hardship. Stopping your use of credit will allow you to create an accurate budget based on the reality of your income and will put you on the path to financial success after bankruptcy because how will you ever know what you can actually afford until you stop using credit?
For those who live in Carmel, Indianapolis, Fishers, Noblesvile, Zionsville and the surrounding areas. Halcomb Singler does offer a free initial consultation to discuss bankruptcy. If you would like to schedule an appointment contact us at 317-575-8222 or click here.
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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