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Bankruptcy Meeting of Creditors: You Have No Reason For Anxiety

Indianapolis Chapter 7 Bankruptcy Lawyer Describes the Bankruptcy Meeting of Creditors: You Have No Reason For Anxiety

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Being a Chapter 7 Bankruptcy Lawyer in Indianapolis, I have experienced the bankruptcy meeting of creditors possibly thousands of times. The Bankruptcy Meeting of Creditors can cause anxiety for many people who have never experienced it before. This article will describe the Chapter 7 Bankruptcy Meeting to show you that there’s no cause for anxiety.

The Bankruptcy is Only a Procedural Requirement Under Section 341 of the Bankruptcy Code

Although you may have some anxiety about the Bankruptcy Meeting of Creditors, keep in mind that it is only a very routine procedural requirement of the Bankruptcy Code. Section 341 of the Bankruptcy Code requires the debtors in bankruptcy to be personally examined by the Bankruptcy Trustee through a series of simple questions. These questions are usually very routine and usually the Trustee does not anticipate for there to be any problems or assets in your case.

Your Creditors Will Most Likely Not Attend Your Bankruptcy Meeting

Although the Bankruptcy Meeting is many times referred to as the Meeting of Creditors, creditors very rarely attend these bankruptcy meetings. It is very unlikely that you will be examined by creditors in any way.

Keep in mind that the Bankruptcy Meeting is not a place for your creditors to object to the bankruptcy: it is only a place for your creditors to ask questions. Because there is usually no objection that creditors can bring to stop the discharge of their debt, creditors rarely find it necessary to attend the Bankruptcy Meeting.

Your Bankruptcy Meeting Will Go Smoothly Most Likely Because Your Attorney is Required to Present Documents to the Trustee Before the Meeting

When a Chapter 7 case goes as planned, documents will be sent to the Trustee ahead of time in order for review before the Trustee asks you any questions. Therefore, it is not very likely for there to be any surprises at the Bankruptcy Meeting. On occasion, additional documents or asset information may be needed after the Bankruptcy Meeting. However, such a request for additional documents is somewhat common and is no cause for alarm.

The Bankruptcy Meeting is Simple: You Sit Down and Answer Some Questions

Although it can be intimidating to come before a Bankruptcy Trustee, the reality is simply that you must sit down and answer some questions. Make sure to bring your driver’s license and Social Security card to the meeting and any other documents your attorney has requested. Also, be on time. After that, there is no reason for anxiety: just go to the Bankruptcy Meeting and answer the simple questions.

~Indianapolis Bankruptcy Attorney John F. Bymaster

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Bankruptcy and Seniors

Should Seniors Consider Filing Bankruptcy?

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Bankruptcy and Seniors is not uncommon.  Seniors (over the age of 65) file bankruptcy much more frequently than most people think. Bankruptcy can be a very powerful option for people of retirement age. Bankruptcy can be the tool that some seniors need for a rewarding retirement.

Bankruptcy and Seniors:  Seniors Commonly File Bankruptcy to Reduce Large Loads of Debt Before Retirement

Many people approaching retirement age have accumulated large amounts of debt that make retirement impossible. These same seniors may have abundant savings in 401(k)s or other retirement accounts, but do not want to deplete their only retirement savings to repay their debts. In order to make their budget possible, many seniors choose to file bankruptcy so that they will be able to live on their reduced retirement income.

Seniors Also File Bankruptcy After Retirement Because of Their Limited Budgets

The transition to fixed income can be difficult for many seniors who have made much higher levels of income in the past. This can cause spending levels that that do not match up to the senior’s new fixed income level. The senior will then incur large, unmanageable credit card or other debts that simply cannot be repaid at their new income level.

Seniors that find themselves saddled with large unsecured debts that they cannot repay may want to consider filing for bankruptcy. In order to stop aggressive collection, seniors many times turn to bankruptcy options in order to reestablish a budget that can be supported at their new fixed income level.

Seniors May Be “Judgment Proof” and May Not Need to File Bankruptcy

Seniors may be “judgment proof” which is basically a financial situation where creditors will never be able to collect on their debts. If you only receive Social Security income or other fixed incomes and do not own real estate, then there is a strong chance you could be judgment proof.

Although you may be a senior and judgment proof, some seniors still elect to file bankruptcy in order to eliminate collection efforts and to clean their credit. A judgment proof status can be very protective for those who really do not have money to pay back the creditors. However, this status does not prohibit your creditors from suing you or taking you to court which can be quite stressful and undesirable for many seniors.

Seniors Should Not Avoid Looking Into Bankruptcy Options

Seniors, perhaps more than anybody, should not avoid looking into bankruptcy options. Because many seniors are faced with fixed income, it may be very liberating for a senior to file bankruptcy in order to have a workable budget during their retirement. If you are a senior who is fighting an impossible debt load, you should contact a local bankruptcy attorney for a free consultation.

~Indianapolis Bankruptcy Attorney John F. Bymaster on Bankruptcy and Seniors

You Included My House and Car in the Bankruptcy?

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What Do You Mean? You Included My House and Car in the Bankruptcy?  Our clients frequently request that we do not include their house or car in their Indianapolis Chapter 7 bankruptcy. You can usually keep your house and cars when you file for Chapter 7 Bankruptcy in Indianapolis. However, the bankruptcy system requires that everything that you own or anybody that you owe money to be included and listed your Indianapolis bankruptcy filing.

Why You Must Include Your House and Cars in Your Indianapolis Chapter 7 Bankruptcy

You must include your house and cars in your Indianapolis bankruptcy because the court must have an accurate picture of everything that you own. The Indianapolis Bankruptcy Court must be able to determine whether you have any non-exempt assets. Although almost all of our clients are able to keep their house and cars as long as they keep making the payments, the court must have full access to your financial information.

Including Your House or Car in Your Indianapolis Chapter 7 Bankruptcy Does Not Mean That You Will Lose Your House or Car During the Bankruptcy

Our office has “included” our clients house and cars in hundreds of Indianapolis Chapter 7 bankruptcy filings. In these cases are clients were able to keep their house and cars if they were able to continue making the payments. Therefore, perhaps a redefining of times is all that is in order. Instead of “not including your house and cars,” perhaps including the house and cars with the intent to retain them is a more accurate picture of the bankruptcy process.

Conclusion: You Must Disclose All of Your Property and Debts When You File Bankruptcy

Just because you must disclose all of your property and debts when you file for a Chapter 7 bankruptcy in Indianapolis, it does not necessarily mean that you will lose any of your property. In almost all of our cases, the Bankruptcy Trustee will allow our clients to keep their property because it is protected by Indiana’s bankruptcy exemptions.

Will I Lose Everything I Bought With Credit Cards?

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Many times our clients ask, “Will I lose everything I bought with credit cards when I file for bankruptcy?”  The answer to this question is “No.”  You will not lose everything you bought with credit cards when you file for bankruptcy.

Generally, you can keep everything that you bought with credit cards when you file for bankruptcy. The reason why you can generally keep everything you bought with credit cards when you file for bankruptcy is because credit cards are usually unsecured debts. An unsecured debt is a loan or other form of debt that has no security interest that can be taken back if you default on the loan payments.

Other loans such as mortgages or car loans are called secured loans because the loan is “secured” with the collateral of your house or car. With these secured loans, the security interest – such as your house or car – can be taken back to help cover the creditor’s losses if you default on the loan payments.

Credit cards, on the other hand, are usually completely unsecured loans. That means that the creditor is only extending you a line of credit on the credit card and they do not desire to take a security interest in anything that you purchase. It is simply an open line of credit that you’re able to use however you desire: as long as you abide by the terms of the agreement.

Credit cards cannot usually “take back” your purchases. Therefore, you can usually keep anything that you have already purchased with the credit card if you default on your credit card payments. If you are bogged down with excessive credit card debt, you may need to consider your options for debt relief. If you have any questions about credit cards or any other matter relating to debt relief, give her office a call.

~Indianapolis Bankruptcy Attorney John F. Bymaster

 

Why Bankruptcy Can Be Good For Your Credit

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Why Bankruptcy Can Be Good For Your Credit- Bankruptcy can be very good for improving your credit score. A credit score that has suffered from default in payments or other negative credit reporting can be restored though eventually after a bankruptcy filing. Let’s discuss how Chapter 7 Bankruptcy or Chapter 13 Bankruptcy can help restore your credit score.

Bankruptcy can be good for your credit score by wiping the slate clean. After you file Chapter 7 Bankruptcy, the slate is wiped clean on your credit. Everything that was on your credit history before is now replaced with a blank credit history that can be a solid foundation to build upon. If you continue to struggle with your past credit or attempt to settle your debts, your negative credit reporting will stay on your credit report. However, with bankruptcy, your past credit is erased. Your credit is erased and replaced with a single entry: the date, place, and chapter of your bankruptcy discharge. Bankruptcy can be good for your credit by creating a new clean foundation to build upon.

After all of your credit data is eliminated, you will have a new foundation to build upon after filing bankruptcy. Any future good credit payment history will be of a very high benefit to you in restoring your credit. Because this good credit will stand out alone with no blemishes, you will be able to build your credit very quickly.

Bankruptcy can be good for your credit because some people may have a higher credit score immediately after the bankruptcy. Most people believe that after bankruptcy they will have somewhat of an “F” credit rating. However, to most creditors, you more of have a C credit rating. This is because you do not have any more debt on your credit report and you cannot file bankruptcy for approximately eight more years. Many creditors, such as small loan or auto finance providers, are willing to take a chance on such a restored credit situation. This availability of limited loans allows many people to rebuild their credit history even faster after bankruptcy.

Bankruptcy can be good for your credit score because many people are able to get larger loans or even finance houses after two years. Even just two years after filing bankruptcy, it may be possible to be applicable for mortgage loans and loans of a larger nature. If you take the time to carefully rebuild your credit after bankruptcy, you may be able to pursue lifelong dreams such as buying a home. Such possibilities would have been very difficult to achieve for many people outside of starting over with bankruptcy relief.

Do not hesitate if bankruptcy is what your credit needs. If you have excessive defaults and other negative material on your credit report, do not hesitate if bankruptcy is what your credit needs for recovery. Bankruptcy could very likely be the first step in recovering your credit situation so that you can enjoy a life that is not plagued with the difficulties that come with bad credit. If you need help in recovering your credit or want any more information about debt relief, give our office a call.

~Indianapolis Bankruptcy Attorney John F. Bymaster