While it is probably safe to say that the government's failure to fix the fiscal cliff, the fact that milk is about $3.00 per gallon, or gas that seems to always hover above $3.50 per gallon that bankruptcy filings may increase in Indiana in 2013. However, that is not what inspired this blog post. While at a bankruptcy hearing a few weeks ago one of the Chapter 7 bankruptcy trustees brought up a great point.
Many reading this may not know that there was significant change to bankruptcy laws in October, 2005. In 2005 it was thought that the change in law was going to make it very difficult to file bankruptcy and especially difficult to qualify for Chapter 7 bankruptcy. In my opinion, didn't really make it harder to qualify for Chapter 7 bankruptcy, it really just requires more information from potential bankruptcy clients. Nonetheless, it seemed like everyone who ever thought about filing bankruptcy in filed in 2005. The hearing rooms that the trustees use to hold bankruptcy hearings were seriously overflowing at the end of 2005 and beginning of 2006. Trustees were holding hearings every day in order to try to keep up. I think that additional trustees were also added in order to make it through the masses of people who filed bankruptcy up to the law change in October, 2005.
Now to the reason I believe 2013 will be a high bankruptcy filing year. The reason is that an individual can only file a Chapter 7 bankruptcy petition once every 8 years. This is measured from the date of the filing of the old bankruptcy petition to the date of the filing of the new bankruptcy petition. Since 2013 is 8 years after the 2005 filing extravaganza I believe 2013 will be a very busy year for bankruptcy attorneys in Indiana. It is safe to say that there are many people who are being hounded by creditors right now who have gone to meet with a bankruptcy attorney only to be turned away because they can't file a Chapter 7 bankruptcy petition again until 8 years have passed since their last filing. In fact, I am filing a bankruptcy petition at the end of the week for a client who first filed Chapter 7 bankruptcy about 8 years ago. So starts the flood?
Combine the fact that so many people filed bankruptcy in Indiana (and everywhere else) in 2005, and add to that the stellar economic situation we have been dealing with since then. The housing meltdown, high unemployment, super high cost of food, and record high student loan debts and it does not take a rocket scientist to predict that bankruptcy filings will be high in 2013. If you live in Indianapolis or the surrounding areas I would be happy to meet with you to discuss bankruptcy. Just give me a call at 575-8222 to set up your appointment. Merry Christmas and Happy New 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.
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