Biggest Budget Drain Ever? Eating Out

              Last night my husband and I went to a restaurant in Fishers.  We were meeting some people there for a networking event and did not select the restaurant.  We each had 2 beers and both ate a sandwich.  The meals were mediocre at best.  I am sure that some deli meat and cheese on a sandwich and a couple of blue moons at home would have tasted better.  The damage, including tip, was $50.00.

             I will admit that when it comes to money I am just a little bit anal.  As an attorney with Halcomb Singler, LLP, in Carmel I meet with people on a daily basis that need to file bankruptcy.  As a result, I am very careful with money.  I see how easy it is to get into financial trouble and I do my best to make my money stretch.  Needless to say I was less than thrilled that we spent 50 bucks on a meal we could have eaten for $10 to $15 bucks at home and it probably would have tasted better.

           I am writing about eating out because it seems to me that the cost of eating out has really gone up a lot of late.  Of course, this makes sense because it seems like the cost of everything has gone up of late.  But when I was reviewing my budget for September I was thinking that eating out is really the easiest way to bust your budget.  I review LOTS of bank statements.  I do this in each bankruptcy case to make sure I am properly accounting for the expenses of my clients to accurately list them in bankruptcy.  One thing that I often notice is that many of my clients, and I suspect most of the rest of Americans, are really hemorrhaging money on eating out.

            The point is that now, more than ever, you need to keep track of how much money you are spending on eating out.  I am not saying that no one should ever eat out.  Lets face it.  Sometimes you are just too tired or don't feel like cooking.  Especially now that we are in a time when both adults in a household must work we just aren't going to cook every night.  But I believe the majority of people have no clue how much money they spend eating out.  And I think that if they did know how much money was going right out of their door and into the hands of a restaurant they would be shocked.  Seriously shocked at the amount of money that could have put towards something other than a mediocre meal.

             Here's the best way to figure out how much you are spending on eating out.  If you are like most Americans you use your debit and credit card to pay for almost all of your expenses on a monthly basis.  Dig out your last 2 months banking and credit card statements.  Sit down with a calculator and add it all up.  Try not to get sick.  Are you spending more than you thought on eating out?

             Now that you know lets talk about how to fix it.  In my opinion, the best way to slow your spending on things like eating out, entertainment, clothing and other variable and somewhat elective expenses is to set a budget.  And once you set that budget go to the bank and withdraw the amount of your one month budget in cash.  Write "eating out" on an envelope and put the cash in the envelope.  Eat out as much or as little as you want that month, but you must pay with the cash in the envelope and once you are out of cash you don't spend any more money eating out.

             Let me know what you spent last month eating out.  I would love to know.  You can respond by posting your dollar amount in the comments section.  For those who follow-through and complete this exercise let me know if you were surprised with the amount you spent on eating out or not.

             Have a safe and happy Labor Day Weekend Everyone!

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. 

My Ex Filed Bankruptcy in Indiana! Now What?

              If you just received notice that your ex-spouse filed bankruptcy in Indiana you are probably nervous and wondering whether you will continue to receive your child support, spousal support, and what will happen to the joint debts that he or she was supposed to pay according to your divorce decree.  These are all very good questions and you should contact your divorce attorney as soon as possible after receiving this notice.  Sometimes it is an easy determination for your divorce attorney.  For example, your child support obligation is not going to go away because your ex filed Chapter 7 or Chapter 13 bankruptcy.  Other times your divorce attorney is simply not familiar enough with the bankruptcy code and it is best to seek the advice of a bankruptcy attorney.

              When I meet with people at Halcomb Singler, LLP, regarding their ex's bankruptcy I start by asking to see their divorce decree or settlement agreement.  This is the document that lays out what amounts will be paid by whom and when.  Typically, when I am meeting with someone whose ex has filed bankruptcy they have filed a Chapter 13 bankruptcy.  I say this because debts tied to a divorce decree are not dischargeable in Chapter 7 bankruptcy.  However, sometimes if your ex-spouse filed a Chapter 13 bankruptcy he or she may be able to discharge a debt owed pursuant to the divorce.

               Whether or not a debt owed pursuant to a divorce decree can be discharged in Chapter 13 bankruptcy depends on whether the debt is what is called a domestic support obligation by the bankruptcy court.  This term is one that is defined in bankruptcy code.  The definition itself is about a half-page long after it is broken down, so I am not going to bother pasting it into this article.  However, the bottom line is that if there is a provision of your divorce decree that says your ex-spouse should pay you an amount that is a lump sum payment for the equalization of marital debt that is not payable in monthly payments over a period of time and that will be paid no matter whether you remarry there is a decent possibility that you will no longer receive said lump sum payment.  Instead, if you file a claim in your ex-spouse's Chapter 13 bankruptcy you will receive a check for a pro-rata amount of that lump sum payment in a few years.  Typically you are only going to receive pennies on the dollar.

              The unfortunate reality that sometimes debts agreed to during the course of divorce negotiations or those ordered by a judge after a final hearing can be "undone" by the filing of bankruptcy is a source of great anger and frustration for those spouses who have themselves depended on the funds as agreed to or ordered by the Court.  In some circumstances it may make sense for the non-bankrutpcy filing spouse to object to the confirmation of the Chapter 13 plan or even to file an adversary proceeding asking the Bankruptcy Court to determine that the debt is one that should be categorized as a domestic support obligation and should therefore be paid in full by the bankruptcy court.

              If your ex-husband or ex-wife has filed bankruptcy I would be happy to meet with you to review your divorce decree and give you my opinion of your rights under the decree now that your ex has filed bankruptcy.  You should know that, unlike when a person wants to talk to me about filing their own bankruptcy, I do charge a fee to meet with a person who wants my opinion with regard to the effect of his or her ex-spouse's bankruptcy.  This fee is simply based on my hourly rate of $200.00 per hour and I require a $500.00 retainer so that I am able to completely review the divorce decree or settlement agreement from your divorce prior to our meeting.  If you would like to set up an appointment click here or call my office at (317) 575-8222.  Halcomb Singler's office is conveniently located in Carmel, Indiana near the intersection of US 31 and Carmel Drive.

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. 

25 Things You Should Never Buy

             


          If you have read my blog before you know that sometimes I write about Chapter 7 or Chapter 13 Bankruptcy in the Indianapolis area, but other times I write about personal finance.  As a bankruptcy attorney at Halcomb Singler in Carmel I often have to look through my client's bank statements.  From time to time I notice something on a client's bank statement that I think is a complete waste of money.  So today I decided to pick 25 things I think no one should every buy.....so, in no particular order:

1.  Bottled Water;
2.  Acrylic Nails;
3.  Starbucks Lattes, Frappes, Frappuccinos (or any of their other fancy-named drinks);
4.  i Tunes;
5.  Apps;
6.  A roomba vacuum;
7.  Premium cable channels;
8.  A bowflex;
9.  Telephone Service for a Home Phone (please do not use the excuse that you may need it in an emergency.  If the emergency is that big neither your home nor your cell phone will work);
10.  Cigarettes!;
11.  Extended warranty for anything you are buying at Best Buy, HH Gregg, etc;
12.  Overdraft fees;
13.  Gym Membership you don't use;
14.  Dvds or BlueRays;
15.  Facebook Games;
16.  Massage Chair;
17.  Books unless required by school or a small amount of children's books (it's called the library);
18.  Anything on an infomercial
19.  Credit Card Interest;
20.  Pre-shredded cheese;
21.  Timeshare condos;
22.  Canned soda;
23.  Cereal;
24.  Tanning/Tanning Beds;
25.  Buying insurance for your mortgage, pet, or car payment.

Do you agree with my list?  What do you disagree with?  What would you add to the list of things that no one should buy?  I am sure there are many more!

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. 

Maintaining Your Budget Long-Term

               I have written several blogs in the past concerning the importance of writing out a household budget.  As I see it, there is really no more important piece to your financial well-being than an accurate and realistic budget listing all of your income and expenses.  I often meet with potential clients at Halcomb Singler, LLP, who have no idea what they are spending per month on their various living expenses.  I see this as a key reason that people have financial problems.  If you have no idea what you are spending how do you know if you are spending more than you can afford?

              When setting up your budget remember to include the little things like clothing, dry cleaning, postage for bill payment and entertainment.  Don't attempt to set up a budget where you spend 0 per month on entertainment, clothing and car repairs.  A budget that doesn't take these expenses into consideration isn't reasonable and you are just setting yourself up to fail.  If you can't get the budget to balance when taking into account all reasonable expenses it is time to get another source of income.

              In my opinion, setting up your budget is the easy part.  There is no point in setting up a budget if you aren't going to stick with it.  And I will not tell you sticking to a budget is easy.  If it was fun to have a budget everyone would have one....and I can assure you that not everyone does.  So, I have been thinking that there must be some way to make sticking with a budget more attractive.  One component that every budget must have is money that goes directly to savings.  I am not taking about the money that comes out of your paycheck to put into your 401(k).  I'm talking about money parked in a savings account or money market account that you can get to fast in case of an emergency.  My number one tip for helping you stick to a budget is to make benchmarks for your savings and as you hit each benchmark give yourself a reward.  For example, if you currently have $1,000.00 in your savings account give yourself the goal of reaching $2,500.00.  When you get there tell yourself that you can spend an extra $100.00 the following month on whatever you would like.  For example, taking you spouse out to a special dinner or buying that new pair of shoes you have had your eye on.  As your savings builds to higher amounts, the amount of your reward can grow.  For example, when your savings reaches $50,000.00 (which it will if you stick to your budget over time), use the money you would have spent funding your savings over the next several months to take a vacation.

           Outside of small rewards for yourself, another way to stick to a budget long-term is to realize that your budget is going to change.  I recommend that you have a budget for each month based on the income and expenses of that month.  This is important because it is not likely that you income and expenses will be the same each month.  For example, if you receive a pay check bi-weekly there will be a month every once in a while where you are paid 3 times.  If you fail to take this into account in your budget there is a good chance that the extra paycheck will disappear and you will have no idea where it went.  It is also extremely important that those who are self-employed and have variable income readjust a budget each month.  For the self-employed some months will be great and others will be terrible as far as income is concerned.  There is no constant income, so it is important to sit down and decide where your money will go that month.  Since no self-employed person knows how much money they will make next month, I recommend using your income from last month to complete your budget for the next month.  For example, I pay myself on the last day of the month.  This allows me to plug in my actual income to my budget for the following month.

             Finally, one of the most important things you must have in order to maintain your budget long-term is discipline.  No doubt it would be more fun to go out and blow all of your money on whatever thing you want right now and keep no records.  However, if you maintain a budget and stick to it over time you will see yourself begin to build wealth, will waste less money on unnecessary or unknown spending and will be more happy in the long run.  If you have any additional tips on how to maintain your budget in the long-term please post them to the comments section.  As always, I enjoy your comments.

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. 

Bankruptcy and Your Inheritance

                One of the questions that the trustees at an Indianapolis 341 meeting of creditors (this is the hearing that all bankruptcy debtors must attend) is will always ask is "Do you expect to receive any inheritance or have you gotten word that you are entitled to any inheritance?"  The reason that a trustee asks this question is because your inheritance can be affected by bankruptcy.

                  Most people I meet with at Halcomb Singler who are considering filing bankruptcy tell me that they wish they were expecting an inheritance, but didn't see that happening.  Now, this is not to say that they want their relatives to pass away; but I do think it reflects how people wish that they were able to solve their debt problems without the assistance of bankruptcy.  But, for some people the issue of bankruptcy and how it could affect their inheritance is a very big deal.

                  Specifically, how bankruptcy could affect inheritance is important for those individuals who have parents/relatives/friends or anyone else who they believe have left the potential bankruptcy debtor money through a will or trust.  This issue is increasingly important if the person leaving money to the potential bankruptcy debtor is ill.  The bottom line is that if you inherit money within 180 days of the filing of a Chapter 7 bankruptcy petition, you inheritance is property of the bankruptcy estate and may be used to repay your creditors.  Additionally, during the pendency of a Chapter 13 bankruptcy, your inheritance is part of the bankruptcy estate.  When money is part of your bankruptcy estate it means that unless you are able to exempt it that it is going to be used to repay your creditors.  

                   So what does this mean?  Should no one who expects that they will receive an inheritance at any point in their lives avoid filing bankruptcy?  No.  Most of my clients who file bankruptcy do so assuming that they will not inherit any money during the next 5 years, which is the longest amount of time that a Chapter 13 bankruptcy can take.  In addition, as I have discussed in other posting, people don't file bankruptcy because they want to, they file because they have to and cannot avoid filing just because of some problem that may or may not arise.  However, in some circumstances I will have clients who have ill parents who are wealthy from whom they expect to eventually inherit and they know that their mother or father would be unhappy if all of the money saved went to creditors.  In that circumstance the parent may opt to change his or her estate plan to either leave the potential debtor child out of the will or trust.  If the parent wants to make sure that the debtor child does receive funds, but does not want the funds to go to the creditors of a child then a spendthrift trust may be drafted.  Either of these options, if done correctly, will prevent creditors from being able to usurp the hard-earned money of the parent should he or she pass away during the time where the inheritance would become property of the bankruptcy estate.  But it is the parent who must effectuate the change in this example.  After all, it is the parent's estate plan and it is the parent who will decide how they would like their money to be distributed after their passing.

                  If you have a family member who is considering filing bankruptcy and you would like to speak with an attorney about updating your estate planning documents then I am not your girl.  I don't typically do much estate planning.  But luckily my business partner, Gregory Halcomb, spends the majority of his time drafting estate planning documents for clients and would be more than willing to help.  Greg is also the one man I know under the age of 70 who can pull off a bow tie (see his picture on our website), which is just plain impressive.  On the other hand, if you are considering bankruptcy due to foreclosure, long-term job loss, decrease in income, or creditors hounding you that you cannot pay and live in Indianapolis or the surrounding areas I would be happy to meet with you to discuss your situation.  There is no fee for this initial consultation, so if you would like to meet with me at our Carmel office call me at (317) 575-8222 ext. 12.  You may or may not opt to file bankruptcy after this meeting, but I can certainly answer your questions and help you come up with a plan for dealing with your financial problems.


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. 

Need to File Bankruptcy? You are not Alone.

          I just read a very interesting article in the New York Times, stating that Olympic Gold Medalist Gabby Douglas' mother has recently filed bankruptcy and that Olympic swimmer and Gold Medalist Ryan Lochte's parents haven't paid their mortgage since 2011.  The article went on to elaborate that, while we might assume without further investigation that the financial issues were as a result of paying for expensive lessons and fees that come with being a parent to an olympic athlete; the olympic training really had little to do with it.

          According to the Times article, both Gabby's parents and Ryan's parents had separated and are in either in the process of divorce or are newly divorced.  This is a very common theme in those I meet with at Halcomb Singler, who are considering filing Chapter 7 or Chapter 13 bankruptcy in Indiana.  It doesn't take a bankruptcy expert to understand that splitting up a home can be financially devastating.  First, there are the divorce attorney expenses, which can easily run upwards of $10,000.00.  But even more importantly, there is the division of the household from one household to two.  This is extremely significant because the household expenses remain about the same, but the income to contribute to those household expenses lessens.  On top of that, it is difficult to adjust your way of living to a lessened income after years of being accustom to that way of life.  According to the article, divorced mothers are at the highest risk of filing for bankruptcy.

          The article goes on to discuss how most Americans don't want to acknowledge their financial struggles publicly and feel ashamed about their situation.  These feelings are in spite of the fact that we are likely all living in the worst economic times our country has or will see in our own lifetimes.  And while I will never argue against personal responsibility, I do wonder if at some point the so-called stigma and shame that most people have along with their financial problems will lessen as more and more people struggle with their finances in the times to come.  I do hope that at some point Americans will look at bankruptcy more as a business decision than a scarlet letter.  What I mean is that instead of thinking of bankruptcy of this serious emotional event that individuals would simply be able to look at it as a math problem, similar to the way a corporation may review its finances.  I know it is much easier for me, as a third party advising people in Indianapolis whether or not to file bankruptcy, to look at it without the shame and stigma associated with bankruptcy.  However, the fact is that times are rough right now.  Gas prices are up.  Food prices are up.  The cost of living overall is way up, but wages are down.  Shouldn't the public perception of bankruptcy be changing as the hard economic times continue?

         The reason that I continue to dedicate my time to this blog is that I know most people don't want to go to their friends and family to discuss money problems or that they are considering filing bankruptcy.  I know from the large amount of clients who read my blog online and eventually make an appointment that the public turns to the internet to research whether bankruptcy could help or whether they would qualify for bankruptcy.  For some reason in these very difficult economic times many still feel shame for having financial problems even though there are many individuals and families dealing with similar issues.  Since I know how many incorrect or outdated facts are on the internet about bankruptcy (and everything else) I hope that my blog continues to provide people in Indianapolis and the surrounding areas with current and helpful information regarding bankruptcy.  However, each person's situation is different and I can only advise people regarding bankruptcy after I have met with them and learned more about their financial situation.  Sometimes filing bankruptcy will help and sometimes it will not.  Regardless, I am willing to sit down and go over bankruptcy facts with anyone living in the Indianapolis area including Fishers, Noblesville, Carmel, Zionsville, Tipton, Kokomo and Greenfield free of charge.  No pressure to file.  If you want to meet with me at Halcomb Singler's Carmel office, call (317) 575-8222 x. 12 or click here and we will 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. 

Notice of Sheriff Sale? Don't Panic.

             If you have just received a Notice of Sheriff Sale in Indiana all is not lost.  This is a very important document that officially sets your house for a sale date and time.  If you do nothing it is very likely that your sheriff sale will be completed and you will end up losing your home on that date.  However, it is important to keep in mind that you still have options.  In my experience homeowners typically receive notice of a sherif sale about 30 days prior to the sale or more.

             Most people are not altogether shocked when they receive a notice of sheriff sale.  After all, by this point you probably haven't paid your mortgage in several months if not a year or more.  In addition, you have probably received several various pleadings from the court including a complaint and judgment.  However, receiving an actual time and date your house is going to be sold by the sheriff is certainly a significant emotional event.

             First, if you haven't talked to an attorney by now you should.  An attorney can review the documents you have received along with the docket to make sure that there is no problem with the complaint that would allow you to set aside the judgment and get a stay of the sheriff sale.  Contrary to what the news would often like people to believe; it is fairly rare to find a mistake that would allow you to set aside the judgement and stop the sheriff sale.

             An attorney can also communicate with the attorney representing your mortgage company to see if any sort of loan modification can be worked out or considered.  Since it takes mortgage companies several months to decide whether a mortgage loan modification will be accepted this typically means the sheriff sale will be delayed.

             On the other hand, it is possible that the mortgage company is not interested in delaying the sale and is also not interested in any type of mortgage loan modification.  The good news is that homeowners often have a remedy through which they do not need any permission or approval from the mortgage company.  The last option is to file a bankruptcy petition.  A Chapter 7 bankruptcy can be a useful tool to buy yourself some time to find a new place to live in the event you do not want to keep the home.  The filing of a Chapter 7 will delay the sale of the home; although the house will be reset for sherif sale at some later date unless you are able to bring your payments current or work out other arrangements with your mortgage company (unlikely).   A Chapter 13 bankruptcy is an excellent tool through which you are able to pay the mortgage arrearage on your home over a period of 3 to 5 years with no additional late fees, likely along with a portion of some other unsecured debts, so that after the end of the 3 to 5 years you are again current on your home.  So long as you stay current on your trustee payments and mortgage payment after the filing of the Chapter 13 bankruptcy, your home will not be reset for sheriff sale.  Of course, you must have enough disposable monthly income to make your regular house payment plus an additional payment to the trustee for a Chapter 13 to be a feasible way to save your home.

            If you live in the Indianapolis, Kokomo, Tipton, Zionsville, Fishers, Noblesville or surrounding areas and have received notice of a sheriff sale you should be concerned.  But don't panic!  As this blog discusses you still have options that may stop the sheriff sale, but you must take action.  If you find yourself in this situation in the Indianapolis area and are considering bankruptcy to stop your sheriff sale call me at 317-575-8222 ext 12 or click here.  I will sit down with you to review your situation and give you my opinion as to whether or not it makes sense to file for bankruptcy.  And there is no charge for this consultation, so you have nothing to waste but time!

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. 

You Might Need to Speak with an Indiana Bankruptcy Lawyer If

                   Nothing frustrates me more than when a professional from whom I have sought a service asks me a question about his or her area of expertise.  For example, if a dermatologist's office asks me if I have dry, normal or oily skin I think to myself, isn't that something you should decided?  It would be akin to an auto mechanic asking if I knew how my tire pressure was reading when I took the car in to see if I needed new tires.  But I have realized that, to an extent, people who are in financial distress and may need to speak with an Indiana Bankruptcy Lawyer have to self-diagnosis at what point they should speak to an attorney.  As a result, I am writing this blog to give readers an idea of when it might be a good idea to speak with a bankruptcy attorney.  Of course, the more of the items on this list that are happening in your life, the more likely it is that you should be speaking with a bankruptcy attorney.  I emphasize speak with and not necessarily file bankruptcy because each case is different and complex and should be evaluated by a professional.  But in my experience most bankruptcy attorneys in the Indianapolis area give a free consultation, so if you are unsure it is worth a consultation.  At any rate, you might need to speak to an Indiana Bankruptcy Attorney if:

1.  You are either missing credit card payments or will be late on credit card payments within the next 30 days;

2.  You have received a summons and complaint in the mail, which means you are being sued by one of your creditors;

3.  Your bank account has been frozen by a creditor;

4.  In order to have enough money to pay your minimum credit card payments you must use your credit cards to buy necessities such as food, clothing and utility payments.  You have been doing this for many months or even a year or more;

5.  Each week you use your paycheck to pay off a cash advance and get a new cash advance.  You cannot escape the cycle of cash advances;

6.  You are constantly looking to relatives to help you with money;

7.  You lost your job and have secured a new job, but your income at your new job is significantly lower;

8.  You haven't bought any clothing for years and you are eating rice, beans and noodles for dinner every night;

9.  You have defaulted on your student loans;

10.  Your car has been repossessed;

11.  Your mortgage company is suing you for mortgage foreclosure;

12.  Your mortgage company just denied your application for loan modification;

13.  You own your own company and haven't paid yourself in months.  You also haven't paid income taxes or withholding taxes;

14.  You haven't used a credit card in years and have been attempting to pay off your credit cards for several years and have made no progress whatsoever.

15.  Your phone is ringing off the hook from debt collectors;

16.  Financial stress is causing you to have mental health issues such as panic attacks or you are suffering other health problems due to your financial stress;

17.  You are several months or even a year or more behind on your house payment;

18.  You have received a notice from the IRS or Indiana Department of Revenue regarding tax levy;

19.  You have credit card, medical or other unsecured debt (not including student loans) of $15,000.00 or more;

20.  You have done everything you can think of to get out of debt including cutting back on expenses and getting a second job.  You still cannot make your budget work and you are at your wit's end.

             If you find yourself answering "yes" to at least five (5) of these questions it is time to speak with a bankruptcy attorney.  If you would like to meet with me at our Halcomb Singler office in Carmel, Indiana, regarding bankruptcy click here.  There is no fee for the appointment.  I may tell you that you do not need to file bankruptcy.  I may have some other ideas for how you can dig your way out of debt.  I may also tell you that I wish you had contacted me a year ago to file bankruptcy.  Regardless, there is no fee for the initial consultation.  If you are struggling financially I look forward to meeting you and I hope I can help.

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. 

Before and After Indiana Chapter 7 Bankruptcy Hypothetical

         Most of the Indianapolis area residents I have represented in bankruptcy wish they knew what they learned after bankruptcy prior to coming to my office.  What I mean is that most of the people I recommend file bankruptcy probably could have moved on with their financial lives months if not years ago had they come to see me sooner.  I am often saddened to hear the story of how they cleaned out their 401ks and all of their savings prior to meeting with me, but are still not able to escape their financial hole.  So, I thought it would be helpful for me to talk about a make believe client we will call Janice Smith and show you how her finances look both before and after bankruptcy.  I apologize in advance for the length of this blog, but this is what I thought it took to fully illustrate a typical before and after Chapter 7 bankruptcy picture in Indiana.

          When Janice comes in to meet with me at Halcomb Singler she lays out her financial picture, and it looks something like this:

Debt


Home Mortgage:  $125,000.00 (House is worth $135,000.00)
Car Loan:  $15,000.00 (Car is worth $13,000.00)
Credit Cards:  $35,000.00
Medical Bills:  $3,000.00
Federal Income Tax:  $1,200.00
Indiana State Income Tax:  $500.00
Student Loans:  $30,000.00

Assets


Home Equity:  $10,000.00
Household Goods/Furnishings:  $4,500.00
Bank Account Balance:  $750.00
Jewelry:  $1,500.00
Clothing:  $250.00
Sporting/Hobby Equipment:  $200.00

Income After Taxes/Deductions Per month:  $3,500.00

Monthly Expenses
Mortgage Payment:  $900.00 (includes taxes & insurance)
HOA Dues:  $25.00
Car Payment:  $355.00
Gas Utility:  $77.00 (budget plan)
Electric Utility:  $55.00 (budget plan)
Water/Sewer:  $35.00
Trash:  $15.00
Cable/Internet:  $150.00
Cell Phones:  $175.00
Food:  $300.00 (Janice and her 2 children)
Entertainment:  $0.00
Clothing:  $0.00
Car Insurance:  $65.00
Life Insurance:  None
Gas/Oil Changes/Car Repairs:  $400.00
Children School Expenses:  $50.00
Out of Pocket Medical Expenses/Prescriptions:  $130.00, but typically only buys $50.00 worth
Haircuts/Personal Hygiene:  $0.00
Student Loan Payment:  $225.00
Payment Plan with Federal Gov't for Taxes:  $100.00
Payment Plan with State for Taxes:  $50.00
Payment Plan for Medical Bills:  $150.00
Credit Card Minimum Payments: $612.50

Janice is left with ($289.50) per month.  Janice is what I call scrimping by.  What I mean is that Janice is not buying all of the prescriptions prescribed by her doctor, she is spending no money on clothing (which is impossible), no money on entertainment (also impossible), is cutting her children's hair on her own, is behind on her student loan payment and is feeding herself and her children on only $300.00 per month.  While Janice is not a real person, this is a fairly typical scenario for those I meet with who are considering bankruptcy.  It is common for them to tell me that they spend what they have left at the end of the month on food and that they don't buy any clothing.  They also tell me things such as their children need braces, but they cannot afford them and that they are worried because they still owe money on their car, but that it is in terrible condition.

Now I'm Going to Go Through Janice's After Chapter 7 Bankruptcy Budget, still based on her $3,500.00 after tax monthly income.

Monthly Expenses

Mortgage Payment:  $900.00 (includes taxes & insurance)

HOA Dues:  $25.00

Car Payment:  $355.00

Gas Utility:  $77.00 (budget plan)

Electric Utility:  $55.00 (budget plan)

Water/Sewer:  $35.00

Trash:  $15.00

Cable/Internet:  $150.00

Cell Phones:  $75.00

Food:  $500.00 (Janice and her 2 children)

Entertainment:  $75.00

Clothing:  $100.00

Car Insurance:  $65.00

Life Insurance:  $20.00

Gas/Oil Changes/Car Repairs:  $400.00

Children School Expenses:  $50.00

Out of Pocket Medical Expenses/Prescriptions:  $130.00

Haircuts/Personal Hygiene:  $50.00

Student Loan Payment:  $225.00

Dental/Orthodontist:  $150.00

Savings;  $50.00

As you can see, Janice is not going to be dining at Ruth Chris every night.  She is still on a fairly tight budget after her Chapter 7 bankruptcy has been discharge and is not "living high on the hog" as they say.  However, Janice is able to better provide for the needs of herself and her children.  She is also able to save a little bit of money each month for the emergencies that will arise.  Most importantly, Janice is able to provide proper meals for her family, has protected her children if something should happen to her with a moderate term life insurance policy, is buying all of the medicine prescribed by her doctor and is able to start a plan with the orthodontist to pay for braces for her children.  In short, Chapter 7 bankruptcy can often help a debtor by allowing them to provide for their family by getting a fresh start. Instead of taking all of her money to pay creditors and having what was left to take care of her family Janice now has sufficient funds to provide for her family.

Again, this is a made-up hypothetical, but it is a fairly realistic picture of what a persons' finances may look like before and after bankruptcy.  If you find yourself in a position similar to the hypothetical where you feel like you are scrimping by with little money to provide for the basic needs of yourself or your family because a large chunk of your income goes to paying creditors you may be a candidate for bankruptcy.  Contact me for an appointment and I will answer your questions and let you know whether or not I believe bankruptcy might help your financial situation.  There is no charge for this initial consultation.  If you are struggling financially I may be able to help you, whether it be through bankruptcy, through debt settlement, or by giving you a plan to pay down your debt yourself.  Call for your appointment at (317) 575-8222.  I look forward to meeting with you myself.

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.