Indiana bankruptcy law
Indiana in the United States is alike the other places and this is the reason why one also finds many persons and companies etc filing for the bankruptcy protection every year. The bankruptcy law under which the application for the bankruptcy can be filed in the Indiana is essentially the U.S bankruptcy law. All the provisions of the U.S bankruptcy law are applicable in Indiana also.
Let us discuss more about the bankruptcy in Indiana :
Bankruptcy Courts :
As far as the bankruptcy courts in Indiana are concerned, there is an Indiana northern district court and the Indiana southern district court. The various location of the northern district court in Indiana is Fort Wayne, Gary, Lafayette and the South Bend. This court has jurisdiction over many counties that are covered under the region like Adams, Wabash etc.
As far as the Indiana southern district court is concerned, its various locations are the Evansville, Indianapolis, New Albany and the Richmond. The county over which it has jurisdiction includes Boone, Clark etc. So, there are many court locations in Indiana for the convenience of all the persons, companies etc that wishes to file application for the bankruptcy protection. Let us discuss the Indiana bankruptcy law in our next part of discussion.
Indiana Bankruptcy Law :
There are various provisions of the Indiana bankruptcy law under which the application for the bankruptcy can easily be filed and the exemption can be availed.
As per the 2005 Bankruptcy act, any person or the company etc that wishes to file an application for the bankruptcy protection under any provision of the U.S bankruptcy law has to first undergo counseling. This has been made mandatory from October 17, 2005. The counseling has to be obtained within the six months before the date when a person or a company wishes to file an application for the bankruptcy protection etc. Apart from this, a financial management instructional course has to be completed by the person that wishes to file for the bankruptcy protection.
As far as the 2005 Bankruptcy Act Means test is concerned, any person or the company that files for the bankruptcy protection in U.S including Indiana has to undergo this test. Under this, the various income and expenses are analyzed by the financial experts to determine if the person, company etc should file the application for the bankruptcy under the chapter 7 or the chapter 13 of the U.S bankruptcy law. In this process, the average income for the past 6 moths is compared with the median income of the state Indiana. If the income is below median, a person may go for chapter 7 bankruptcy, but if the average income exceeds the median income, it would be investigated under which chapter the application for the bankruptcy should be filed so as to protect the interest of the various parties concerned. Also, if any person or company in Indiana is not able to pay $100 per month to its various unsecured creditors, the application can be filed under the chapter 7.
Let us now discuss how a person or a company in Indiana should proceed for the filing the application for the bankruptcy in the court. First of all, the current income, all the financial transactions for the past two years, the living expenses, all the debts, and all the assets that include the personal property and the other assets, should be noted down. The tax returns for the past two years also have to be jotted down. Once all the information has been gathered, all the exempt assets should be earmarked as per the Indian District Bankruptcy court provisions applicable. There are forms available, which are known as the schedules for filing the application for the bankruptcy in Indiana. After all the above formalities are completed, the application for the bankruptcy can easily be filed at any of the locations of the bankruptcy court, as per the jurisdiction. The fee for filing the bankruptcy application is $274 in Indiana under the chapter 7 and $ 189 under the chapter 13 of the bankruptcy law. The fee can be paid in installments also. One point that is to be noted here that if a person etc is filing the application for the bankruptcy under the chapter 13, he has to submit a repayment plan also. The repayment plan must stand three aspects:
It is submitted in good faith.
The unsecured creditors are paid at least as much if the person or the company would have filed the application for the bankruptcy under the chapter 7.
All the disposable income should consist of at least three years plan.
Once the application along with all the required information is filed, the automatic stay comes into effect immediately. And thus, the whole process starts.
Given above are the various bankruptcy laws in Indiana that are applicable.
As far as the exemptions in Indiana are concerned, there are of course exemptions available in Indiana. Any asset including the property etc can easily be retained by the bankrupt debtor as per the exemption permitted in Indiana, the value of whose should be in dollar. So, filing the application for the bankruptcy does not affect these assets and can be retained by the bankrupt debtor. It is also to be noted here that the exemptions are allowed in Indiana to the equity that the bankrupt debtor has in the property. The equity is essentially the difference between the value of the property and the valued owed by the bankrupt debtor to that property. The assets that have bought by means of bank loans etc, the equity in these also can be kept by the bankrupt debtor and he can easily continue making payments throughout the bankruptcy as he was normally doing. The Indiana bankruptcy law also permits the married couple to file jointly for the full set of exemptions. However, if a person wishes to keep a non-exempt asset with him after filing for the bankruptcy, he can keep it provided he has paid the value of the non-exempt asset to the bankrupt trustee appointed by the court. In Indiana, the exemptions are permitted in the cases of homestead, insurance, pensions, public benefits it any, wild card, trade tools and other miscellaneous assets. Thus, exemptions are there in the Indiana bankruptcy law.
So, Appropriate Law is there in Indiana:
After reading the above article, it can be rightly said that there are enough provisions in the Indiana bankruptcy law. Apart from these, there are exemptions too that are allowed as per the bankruptcy law in Indiana.
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