Indiana Bankruptcy Legal Questions

There is a co-debtor stay during chapter 13 where collection is stopped against the non-filing borrower. This will not affect the co-borrower's credit as long as the debt is fully paid. If the debt is unpaid in part then it must be paid after the chapter 13 is over or else there will be negative credit implications and collection action. Secondly, a bankruptcy stops lawsuits from going forward.... Read More

In Indiana, a ring is considered personal property and the applicable exemption for personal property is $9,350 per person. Also, keep in mind that the ring may have a lien against it as most jewelers purchase agreements collateralize the jewelry until it is paid in full; thus, the ring's value would be diminished by how much is still owed on it.... Read More

This question is becoming more and more relevant as HOA dues are represented in the 341 meeting. The question is, who are you is the recipient of your quitclaim? quitclaiming back to the bank won't work. I have seen HOA dues accrue where the owner was liable for the dues even after the home had been foreclosed.... Read More

Your questions states that there is no equity in the RV, so if you can keep up the payments, you can keep the RV in or out of bankruptcy. You do not tell me if there is equity in your car or your home. The same analysis applies. If there is equity, you then need to look at what exemptions are available to you to protect your assets. I will be glad to help you with this if you call me for a free consultation.... Read More

Formal reaffirmation requires approval by the bankruptcy judge. It is almost always inadvisable to reaffirm a mortgage since the lender retains a security interest whether or not it is reaffirmed. The impact of a reaffirmation agreement is that it is as though you never filed bankruptcy on the debt. In the event of default the creditor can sue for a deficiency unless there is a statute such as a residential anti-deficiency law. These is a serious issue and you should seek the advice of an attorney who is a certified specialist in bankruptcy law. Consult the State Bar for a listing of those attorneys in your area.... Read More

If you are both co-debtors under the purchase agreement, when your boyfriend files for bankruptcy protection under any chapter, he can simply surrender the vehicle, which will wipe out the debt for the vehicle as to him. You, however, will remain liable under the purchase/loan agreement and may keep your car so long as you keep making the payments. Now, if he pays for only the market value of the car under the Chapter 13 plan, the co-debtor stay should protect you while he performs under the Chapter 13 plan, but neither your nor him will get title to the car until the plan is completed. If you split up before the plan is completed and he modifies his plan to surrender the vehicle (which is something any good attorney would advise him to do because the attorney's obligations run to the specific client) and stop making the reduced payments, you will still be liable for a large amount of arrears and the lender may repossess the vehicle if you don't get current or make arrangements with the lender unless, of course, you file bankruptcy yourself at that point and cram down the vehicle to market value in your own Chapter 13 case.... Read More

I am confused how her home could have been discharged through bankruptcy yet you still are trying to do a short sale. When real property is surrendered during bankruptcy the bankruptcy court considers the debt discharged because the collateral was given back to the secured note holder. The bank will issue her a 1099, but form 938 should have been given to her by her bankruptcy attorney, which is the exemption due to bankruptcy. She cannot work with the bank to conduct a shortsale.... Read More

Yes, one spouse can legally file bankruptcy during pending divorce proceedings. The federal bankruptcy law allows for one spouse to file an individual bankruptcy without the other spouse filing. This is true even in cases where a couple is married and living together and only one spouse wants to file the bankruptcy. In your case, the spouse can file bankruptcy alone but be aware (s)he may list you as a creditor in order to eliminate his/her responsibility for any joint debts. Usually, a court order in a divorce proceeding overrules a bankruptcy, but you will still probably be listed as a creditor on the bankruptcy filing for any joint debts. You should contact a bankruptcy attorney in your area if you have any specific questions about your rights.Terry Duncan Charlotte, NC Bankruptcy Lawyer... Read More

Co-signing on those private student loans is no different than if you were to have co-signed on a car or any other loan with your daughter. As a bankruptcy lawyer I consider it to be a part of our job to also let people know when, if at all, they should file bankruptcy. You shouldn't file bankruptcy, at least not yet. The main reason I'm comfortable saying this is because your daughter is only past due on the debts by a week. The creditors for this loan are like any other creditors. Shortly after a payment is due is when they will harass you the most. During this time they are also the least likely to work with you. I would suggest that you explain the situation to the creditor (you may have already done this). After doing so they will still continue to call you but I would limit your exposure to those calls. However, your daughter should pay all that she can towards those student loans. If your daughter's financial situation doesn't improve, after some time has passed the creditor will realize that your daughter truly cannot afford the payments. At that time, they may be willing to work with her to set up a suitable payment plan. However, you want to be certain that they do not file suit against you. If you believe that they are going to file suit against you then you will want to at least contact a bankruptcy lawyer in your area to discuss your specific situation. At that time, based upon your situation as a whole, it may make sense to file bankruptcy to protect yourself from any liability for those private student loan debts. Terry Duncan North Carolina Bankruptcy Lawyer ... Read More