Monday, January 23, 2012

Will My Indiana Chapter 7 Bankruptcy Be "Approved"?

            Of course, those who find themselves in need of a bankruptcy are worried.  They are often worried about the many things they don't know about Chapter 7 Bankruptcy and one of these things is whether their bankruptcy will be "Approved."  Potential clients are typically under the impression that when they go to their hearing it will be in front of a judge and we will need to defend that they deserve to file bankruptcy because they don't make enough money to pay their bills.  Since this is really not what happens in the Chapter 7 Bankruptcy process I wanted to blog about being "Approved" for Indiana Chapter 7 Bankruptcy from an attorney's perspective.

          First things first.  If you have not filed a Chapter 7 bankruptcy within the last 8 years, are truthful in the submission of your bankruptcy petition, pass the income and means test requirements and take the credit counseling and financial management courses necessary you will receive a bankruptcy discharge.  The bankruptcy discharge is the legal word for you no longer owing the dischargeable debts listed in your bankruptcy petition.

         When a Chapter 7 bankruptcy petition is filed there is no instant approval or denial.  A few days after the Chapter 7 bankruptcy petition is filed it is set for a 341 meeting of creditors, which the Chapter 7 bankruptcy debtor(s) are required to attend.  At the 341 hearing there is a trustee, who is an attorney.....not a judge.  The trustee is not the one who decides whether or not your Chapter 7 bankruptcy sails through the process to discharge, so don't go into the 341 meeting thinking that you are going to get a stamp of approval or denial.  If the trustee believes that there is a problem with your Chapter 7 bankruptcy going through to discharge he or she simply submits a form the the United States Trustee's office.

          The United States Trustee's office has 10 days from the 341 hearing to file what is called a notice of presumed abuse.  So if it has been more than 10 days since your Chapter 7 bankruptcy has been filed, the trustee is not going to object to you receiving a discharge in Chapter 7 bankruptcy.  If a notice of presumed abuse is filed in your case there is an additional process, which you can read about in my prior blog here, but rest assured that in my experience most of these cases proceed to discharge.

          So I guess what I would say to those considering bankruptcy is try to relax, although I know this can be difficult.  In my experience, the vast majority of Chapter 7 bankruptcy petitions that are filed for people living in the Indianapolis are go through and receive a discharge without any problems.  The bottom line is that if you have found an attorney you trust and he or she tells you that your Chapter 7 bankruptcy will go through just fine, chances are that it probably will.  So, try not to worry about whether your petition will be approved.  Instead, concentrate on getting your financial management course completed and pay attention to any other correspondence you receive from your attorney.

         I represent those who need to file Chapter 7 and Chapter 13 bankruptcy in Indianapolis, Carmel, Zionsville, Noblesville, Fishers, Tipton, Anderson and the surrounding areas.  I offer an initial consultation at no cost where we discus your finances, assets and go over whether bankruptcy would make sense for you.  At this meeting I answer your questions and there is no requirement that you move forward with bankruptcy.  It is simply an informational meeting.  If you would like to come in to discuss whether bankruptcy might be a way to solve your financial problems click here or call our office 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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