CHAPTER 7 BANKRUPTCY
Chapter 7 Bankruptcy Attorney for Indianapolis
Chapter 7 bankruptcy is complete elimination of all unsecured debt and medical bills. The Indiana court bankruptcy process usually takes four to six months, and on your discharge date you get out debt free.
To qualify for Chapter 7 bankruptcy in Indiana residents must pass the Indiana means test. For most Hoosiers that means if you have a family of four, you have to make under $70,621 annually, but the courts go back six months from the date you file.
Therefore if you were making $100,000 a year, and then lost your job six months later, and your income dropped by at least $30,000 you would be able to file for Chapter 7 Indiana bankruptcy protection if you met the asset requirements.
The other issue with filing Chapter 7 is found in assets in the form of a car, home, cash, or other non-protected investments. Most retirement investments are protected under the Indiana bankruptcy code.
You are allowed to have a personal residence with less than $17,600 per filer in equity, no more than $9,350 tangible personal property per filer, and less than $350 in cash per filer.
So even though your income may have dropped, you still may not qualify for Indiana Chapter 7 Bankruptcy.