What Do I Need to Do Before Filing for Bankruptcy in Indianapolis?
In this constantly shifting economic landscape, millions of Americans have had to come to terms with real financial ruin. For many, the only feasible solution is reorganization or discharge of accumulated debt: bankruptcy. But how do you know if your personal situation warrants such an extreme measure? If you are an Indianapolis resident facing bankruptcy, reach out to an experienced bankruptcy attorney who will assess your finances in detail. Using tools such as a financial means test, a bankruptcy lawyer can determine if you qualify to file for a Chapter 7 or Chapter 13 bankruptcy.
What Is a Financial Means Test?
A bankruptcy means test is administered to determine a debtor’s average household income in relation to specific guidelines. The financial means test is an effort to see that a debtor has exhausted all possible means to settle their debt before coming to the court. Additionally, the means test will verify that a debtor is eligible for a complete discharge of his or her debt as opposed to a simple reorganization of that debt.
The court will ask you to provide a list of all of your income and assets. If it is determined that you can provide basic necessities such as food, clothing and shelter for yourself while you repay your debt, you will be required to file for Chapter 13 bankruptcy. The judge may also order you to consolidate your debt or make other arrangements to pay without filing for bankruptcy. If you can show that you don't have the means to pay your bills and support yourself, you will be allowed to completely discharge your debt.
What Gets Included As an Asset?
Almost all types of income except for child support payments and income from a previous judgment are included as assets for the means test. Collectibles, antiques and other items that are not subject to bankruptcy exemptions will be included in this test as well. Only an experienced bankruptcy attorney can determine which of your personal belongings are included as assets and subject to liquidation.
Where to Turn for Help in Greenwood
If you need help filing for bankruptcy in the Southside of Indianapolis, Franklin or Greenwood, please call us at 317-888-0006 or 800-319-0064.