WHAT IS CHAPTER 7 BANKRUPTCY?
Since 1993, I have made it a priority for my clients to make the bankruptcy process both affordable and simple. Why are my fees affordable? My fees are affordable because I am only one block from the Federal Courthouse where bankruptcy hearings are held. I have no wasted time in traveling to the courthouse to attend bankruptcy hearings. I keep it simple for my clients by completing the forms or questionnaires on their behalf. I throughly explain the bankruptcy process in terms understandable for my clients so that they may make informed decisions.
CHAPTER 7: ATTORNEY FEE OF $700, PLUS FILING FEE OF $338 FOR A TOTAL OF $1,038
The fees can be paid in installments. $200 during first the appointment, $335 at the time of executing your documents, and the balance of $500 paid about a month after your case is filed.
CHAPTER 13: ATTORNEY FEE OF $250, PLUS FILING FEE OF $313 FOR A TOTAL OF $563
In some circumstances, I am willing to file a case with no attorney fees paid. Once $560 is paid, I can file your petition which will bring a prompt end to an wage garnishment, home foreclosure, and all other collection activities. Attorney fees above the initial retainer is paid after your case is filed through the trustee under the plan. The maximum attorney fees that can be charged without court approval is $4,000.
AFFORDABLE FEES TO NEGOTIATE WITH YOUR MAJOR CREDITORS
I am usually able to give you a fee quote over the phone. Depending on the number of creditors you desire to negotiate a settlement, the attorney fee normally is about $250 to $500
HOW MUCH PROPERTY CAN I KEEP IN A CHAPTER 7?
The Indiana Code allows individuals to protect a certain amount of property from creditor collection. The Indiana Code refers to the protected property as “exempt” property. In most bankruptcy cases, individuals can retain all property. There are several categories of protected or exempt property. As of April 1, 2018, a partial list of the amount of exempt property which applies to most individuals that is protected is as follows:
1. Personal residence exemption of up to $19,300 ($38,600 if filing with your spouse). This means you are allowed to have up to $19,300 equity in your home. Given the costs associated with selling a home, you can in reality have in excess of $19,300 equity protected in a bankruptcy case. Equity is the difference between the home’s value and the amount due on the mortgage. The bankruptcy trustee will perform a liquidation analysis of the residence. After deducting realtor fees and closing costs, you could have in reality $26,000 or more in home equity. The liquidation analysis amount is affected by the value of your home.
2. Tangible personal property exemption of up to $10,250 ($20,500 if filing with your spouse). Tangible personal is best described as any property you can physically touch and move. Common examples of tangible personal property includes the equity in your vehicle, household goods, computers, clothes, tools, collectibles, and recreational property.
3. Intangible property exemption of up to $400 ($800 if filing with your spouse). Common examples of intangible property are cash, checking and savings account balances, debit card balances, certificates of deposit, stocks, bonds, and receivables. In most case, a trustee will not seize intangible property having a value of less than $1,400.
4. Retirement funds generally have no exemption limit. For most individuals, you will be able to keep the entire balance in any retirement fund.
5. Earned Income Credit amount from tax refunds have no limit. Many individual receive an earned income credit as part of their income tax refund. The earned income credit is fully protected. Also, a portion of the remaining refund may be protected. The portion or prorated amount of the non-earned income credit of your refund is based on the date your bankruptcy petition was filed.
6. Unemployment Compensation Benefits are fully protected without limit. 7. Education Savings Accounts (ESA) and Health Savings Accounts (HSA) have no limit. Should you exceed the exemption limits, you may still have options available to protect you property. Contact Indianapolis Bankruptcy Attorney David Mathies and I will explain to you methods which may be available to protect your property.
WHAT ARE THE CRITERIA FOR FILING A CHAPTER 7 BANKRUPTCY CASE?
There are several conditions that must be met to qualify for a Chapter 7 Bankruptcy. Most individuals satisfy all the conditions. Some of the conditions are as follows:
1. “Means Test” Your projected annual income based on the previous six-month average may not exceed the Indiana median income for your household size. The Bankruptcy Code refers to this as the “Means Test”. As of April 1, 2018, the current Indiana median income for a given household size are as follows:
Household size Cannot Exceed
1 $46,802
2 $59,392
3 $69,235
4 $79,296
5 $87,696
6 $96,096
Should you exceed the Indiana median income for your household size, you may still qualify for a Chapter 7 Bankruptcy Case. I have filed numerous case where an individual exceeds the Indiana median income. These situations involved individuals who have substantial outstanding student loans, substantial delinquent income taxes, or recently have had a reduction in pay or became unemployed. There are other reasons you may qualify for chapter 7 notwithstanding exceeding the household size median income.
2. Projected Disposable Income Test Your projected monthly budget should indicate disposable income of less than $100. In other words, you monthly income should not exceed your monthly expenses by an amount of less than $100. The Bankruptcy Code requires you to disclose your projected monthly income and living expenses (excluding the debt payments you intend discharge in your bankruptcy case). Allowed monthly expenses include rent or mortgage payments, auto payments, auto insurance, auto repairs, renter’s insurance, utilities, cell phone, cable or satellite, internet, food, medical expenses, child support, student loan payments, and any other reasonable and necessary monthly expense. Most individuals pass the projected monthly income and expense test.
3. Prior Chapter 7 Bankruptcy Discharge You are allowed to receive a Chapter 7 bankruptcy discharge only once in every 8 years. The 8 years starts from the FILING date of your previous Chapter 7 case and not the discharge date. Should you be ineligible to file a chapter 7 case, you do have options. You can file a case under Chapter 13 and receive the same protection from your creditors as you would under Chapter 7. However, a chapter 13 case requires you remit monthly payments to a trustee for a minimal period of three years to repay at last part of your creditor claims. Depending on your situation, the chapter 13 plan payments may be as low as $150 monthly. There are certain conditions you must meet to qualify for a chapter 13 bankruptcy case.