The 2011 bankruptcy and foreclosure statistics show a 12% reduction in personal bankruptcies and a 34% reduction in foreclosures. Of these bankruptcies, close to 70% of the filings were Chapter 7 bankruptcies, which discharges debt and allows the debtor to avoid repayment. The other third involved Chapter 13 bankruptcies, which allow the debtor to force creditors to take what they can afford to repay over a three to five year repayment plan, then discharge (eliminate) any unpaid balances of most unsecured debts.
Along with the drop in bankruptcy and foreclosure came an increase in consumer borrowing as reported by the Federal Reserve in November. As consumers gain more access to credit, they seem less likely to consider bankruptcy. It seems as if they are using credit cards instead. This may lead to yet another personal debt crisis.
It is not wise for consumers to use credit to attempt to “borrow their way out of debt.” Taking out loans or using credit cards at a point in time when you know or should know that you do not or will not have the ability to repay the debt can cause problems in potential future bankruptcy filings. Using credit in this manner can result in those debts exception from discharge in a future bankruptcy filing. It may be best to file for bankruptcy before acquiring new debts attempting to keep up.
By law, filing for bankruptcy protects the debtor against harassing collector calls and lawsuits. It is a legitimate option for those who are struggling to make ends meet and cannot see a way out of debt. An experienced personal bankruptcy attorney can help you with your options and assist you in creating a new start.
Our knowledgeable and compassionate attorneys have over 30 years of experience with personal bankruptcy law and will work with you to find the right solution. We are nonjudgmental and personalize our service to your needs. If you are plagued with debt problems, call us now at 317-759-1483 to set up a free consultation with one of our qualified bankruptcy lawyers. You can also email us for more information.
We offer clear explanations with personalized service and fast response to emergency situations. If you need help getting out of debt, call us now at 317-759-1483 to set up a free consultation with one of our compassionate Indianapolis bankruptcy lawyers. You can also email us for more information.
About the Attorneys
Andrew Sawin received his Bachelor of Arts degree from Indiana University in 1989 and his Doctor of Jurisprudence from Indiana University School of Law – Indianapolis in 1995. He has concentrated his practice in the field of Consumer Bankruptcy for the past 15 years.
Richard Shea graduated from California State Polytechnic University, Pomona with a Bachelor of Science degree in Hotel & Restaurant Management in 1995 and received his Doctor of Jurisprudence from Indiana University School in 1998.
Larry Des Jardines graduated Summa Cum Laude with a Doctor of Jurisprudence degree from Indiana University School of Law. Larry is a member of the Indianapolis Bar Association, the Indiana State Bar Association, the American Bar Association and the National Association of Consumer Bankruptcy Attorneys.