Many people believe that bankruptcy only applies to those who are unemployed or completely broke. That is not true. If you are working but still struggling to pay your bills, you may qualify for Chapter 7 or Chapter 13 bankruptcy in Indiana. Many employed individuals file for bankruptcy while trying to get ahead and manage overwhelming debt.
You do not have to be broke to file
Even with a steady income, major expenses like medical debt, credit card balances or car payments can trap you in a cycle of stress. Medical expenses alone contribute to 58% of bankruptcies in the country. Bankruptcy laws support honest, hardworking people who want a fresh start—not just those who lost their jobs.
Understand the means test
The means test is a method that helps determine whether you qualify for Chapter 7 bankruptcy. It looks at your income. Then, it compares it to the state median for your household size. If your income falls below that level, you qualify for Chapter 7. If it is higher, you may still qualify after deducting necessary expenses, such as rent, utilities, childcare and transportation.
If you do not meet the Chapter 7 threshold, you can still consider Chapter 13 bankruptcy. This option lets you repay part of your debt through a structured payment plan over three to five years. It also helps you keep your house or car and stops creditor harassment.
Bankruptcy supports working people, too
Bankruptcy does not mean you have given up. It means you have chosen to take control. Whether you face medical bills, rising living costs or unexpected financial setbacks, the law provides you with tools to move forward.
If you earn a paycheck but still fall behind on bills, do not rule out bankruptcy. Many working Hoosiers have used it to get relief and build a stronger future.
Talk to someone who knows the system
No two financial stories are the same. A skilled attorney can examine the entire picture and help you understand your best options. They can walk you through the means test, explain which assets you can keep and help you make informed decisions.
You do not have to go through this alone. With the right support, you can protect what matters most and take the first step toward long-term peace of mind.
