However, the process of going through Chapter 7 can be complicated and stressful to ensure you can keep what you need to continue living your life even after bankruptcy. In this article, we will walk you through Indiana debt collection laws and some of the many exemptions that help you keep your personal, real, or intangible assets when you file for a Chapter 7 in the State of Indiana.

What is Chapter 7 Bankruptcy?

Chapter 7 is the quickest and easiest way to discharge the majority of your debts through bankruptcy. It’s also the most common with over 229,000 filings in 2022 alone. 

Chapter 7 is also known as liquidation bankruptcy because in exchange for receiving a discharge of most kinds of debts, the debtor has to give up non-exempt assets. The Court can sell all nonexempt possessions and assets. The money earned from these sales then goes to the creditors and any remaining balances on the debts are discharged.  

Debt that qualifies for discharge under Chapter 7 includes:

• Credit card debt
• Medical bills
• Personal loans
• Mortgages
• Car loans
• Utility bills
• Payday loans
• Evictions

Debt that usually does not qualify for discharge under Chapter 7 includes:

• Child support
• Alimony
• Most student loans
• Some taxes

If the filer qualifies for Chapter 7, not all assets need to be sold, however. Known as exempt assets, these are the things you may keep when you file for Chapter 7 bankruptcy.

Debt Collection Laws: What Can Debt Collectors Do?

Debt collectors have a legal right to pursue the collection of personal debt within the bounds of the law. They can typically contact you through various means, including phone calls, letters, and emails, to request payment or negotiate repayment terms. Debt collectors may also report delinquent accounts to credit bureaus, which can negatively impact your credit score. In some cases, debt collectors may take legal action by filing a lawsuit against you to obtain a court judgment. If the court grants a judgment in favor of the creditor, they have additional collection options, such as wage garnishment, bank account levies, or placing liens on the debtor’s property. Debt collectors must adhere to the Fair Debt Collection Practices Act (FDCPA) and other relevant state and federal debt collection laws to ensure they act within the bounds of legality and fairness. Debtors have rights and protections under these laws to prevent harassment, false representations, or unfair practices by debt collectors.

Debt collectors in Indiana are subject to certain regulations and restrictions when attempting to recover personal debt. Indiana laws also provide individuals with exemptions to protect specific assets during bankruptcy proceedings. These exemptions allow debtors to retain essential items and debt collectors or bankruptcy trustees cannot seize or force the sale of these exempt assets to satisfy outstanding debts. However, it’s crucial to consult with a bankruptcy attorney to ensure that your assets are appropriately protected within the legal framework. Indiana’s bankruptcy laws aim to strike a balance between helping individuals overcome financial difficulties while ensuring that creditors have a fair chance to recover some of what they are owed.

What Are My Exempt Assets?

The United States Bankruptcy Code allows filers to keep certain assets, but depending on your state, that list may include other assets. Most states have codified what bankruptcy exemptions debtors filing in that state can use. If you have moved from a different state in the two years prior to filing the exemptions you may take become a bit more complicated. It is best to consult a bankruptcy attorney to ensure that you get the most benefit from your exemptions.

One of the most common exemptions in Indiana is the Homestead Exemption which allows an individual to protect up to $22,750 of equity in their real estate holdings or mobile home. If a spouse co-owns that property, the exemption amount can be doubled. This exemption applies to a property that is your personal or family residence.

Another standard exemption is known as the tangible personal property exemption. With this exemption, you can protect up to $12,100 of nonresidential real estate or tangible personal property of your choosing. Under another exemption, you can also protect up to $450 of intangible property, which include cash or cash equivalents. While Indiana does not have a specific exemption for motor vehicles, the tangible property exemption is often used to protect any equity a filer has in a car, truck, or other vehicle.

Filers in Indiana can also protect wages with the wages exemption. This would include the lesser of 75% of unpaid wages that were earned by the filer or 30 times the Federal minimum wage. 

Another common exemption allows you to protect retirement benefits you have invested in. This may include:

• Pension, retirement, or IRA accounts
• Police and firefighter pension fund
• Public employee retirement
• Indiana State Teachers’ Retirement fund benefits

These are just a few of the exemptions that Indiana state bankruptcy laws allow you to protect if you are filing for Chapter 7 bankruptcy and facing asset liquidation. The goal is to not leave you completely destitute after filing for bankruptcy. These exemptions help ensure you have someplace to live, transportation to get to and from work, and other essentials. 

What Are My Next Steps?

If you’re considering Chapter 7 bankruptcy, it’s vital to know the debt collection laws, and what exemptions apply to your situation and which are not to determine the best course of action. If exceptions are used incorrectly, you could potentially lose the property altogether. 

Because the bankruptcy process can be complicated and stressful, the first step to take if you’re considering Chapter 7 bankruptcy is to contact a trusted bankruptcy attorney like the attorneys at Sawin & Shea, LLC. Our collective decades of experience mean we know the laws surrounding bankruptcy inside and out, and we will ensure any debtors are practicing fair debt collection practices and following the law. We will be able to guide you through the entire process with confidence that you’ll get to keep everything you need while experiencing a quick and simple Chapter 7 bankruptcy. 

Contact our office today or call us at 317-759-1483 to discuss all your bankruptcy options and have the peace of mind you deserve during the entire process. 

The post What Can I Keep if I File For Chapter 7 Bankruptcy? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

You thought the phone calls were over – and they should be. That’s why it can be especially disheartening if creditors keep calling. Who knows how to get debt collectors to stop calling after bankruptcy? How long after filing for bankruptcy do collectors keep calling? Why would such a thing even happen? There are three reasons:

1. Some creditors simply haven’t yet received the message that you have filed for bankruptcy. Possibly the information hasn’t yet been processed and had the chance to filter through their system. This can be the case with small enterprises or with multi-level corporations.
2. Some creditors are actively trying to take advantage of you. They may be fully aware that an automatic stay is in place, but are hoping that you don’t understand your rights and will be scared into paying something.
3. You may be hearing from creditors who will not be affected by your bankruptcy. Some debts are not dischargeable:
   
   • Student loans
   • Some taxes
   • Overdue child and spousal support
   • Debts arising from willful and reckless acts, embezzlement, fraud, or larceny
   • Any debts you did not list when you filed for bankruptcy (unscheduled debts) unless the creditor learns of your bankruptcy case.

How to stop debt collector calls after filing for bankruptcy:

1. Answer the calls. You have already taken a positive step and have no need to fear phone calls from people who shouldn’t be contacting you; they are in the wrong.
2. Get the name (or employee number) of the person you are speaking to and write down all details of the call, including the date, time, company involved, and what was said. Keep all documentation, including voice messages.
3. Inform the caller that you have filed for bankruptcy and tell them to stop contacting you. Give the caller your case number.
4. If calls (or letters) continue, contact your bankruptcy attorney. Under the FDCPA (Fair Debt Collection Practices Act), third-party debt collection agents are not allowed to contact you asking for payment once you have filed for bankruptcy. It is illegal. The bankruptcy attorneys at Sawin & Shea, LLC can answer your questions and enforce your rights. At the very least, we can make sure that all information has been updated in the company’s system, and if necessary, we can pursue legal action against those who continue to illegally harass you so that you can receive compensation for your mental and emotional stress.

What if my debt cannot be discharged?

If you are being contacted about debt that is not dischargeable, you still have rights under the FDCPA. Debt collectors are not allowed to do the following:

• Call repeatedly
• Call before 8:00 a.m. or after 9:00 p.m.
• Call without identifying themselves
• Disclose your information to third parties
• Use abusive or offensive language
• Contact you after you have provided written notification that you do not want to be contacted
• Claim to be affiliated with any governmental organization if they are not
• Misrepresent the character, amount, or legal status of a debt (in other words: lie)
• Threaten to take action which is not actually intended to be taken
• Threaten to communicate or actually communicate false credit information

What if my debts have been discharged and the creditor calls keep coming?

After your bankruptcy, your creditors will receive notice of your bankruptcy discharge order. It’s not common, but sometimes debt collectors continue to demand payments from people who have had their debts discharged. If this happens to you, follow the steps outlined above.

Don’t hesitate to contact Sawin & Shea, LLC. We can inform the bankruptcy courts of what is happening, and the courts may levy fines or penalties. If necessary, we can begin legal proceedings against the debt collector who is continuing to harass you. 

A qualified legal professional knows how to get debt collectors to stop calling after bankruptcy and can help you navigate the stress of debt collectors who may or may not be obeying the law. The Indiana bankruptcy attorneys at Sawin & Shea, LLCpursue collection agencies who violate the FDCPA law, during and after your bankruptcy case. If you are struggling with creditor calls, contact us at 317-759-1483 or Send an Email for a Free Consultation. We are ready to help.

The post How to Get Debt Collectors to Stop Calling after Bankruptcy appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a form of personal bankruptcy that liquidates filers’ assets to discharge qualifying unsecured debts. Unsecured debts are not backed by collateral, such as car payments and home mortgages. Although the idea of liquidating your assets may sound stressful and undesirable, most of those who declare Chapter 7 can retain all of their possessions after filing.

The debts that you’ll be able to discharge with Chapter 7 bankruptcy include:

• Medical debts
• Credit card debts
• Majority of auto accident claims
• Personal loans
• Business debts
• Past-due rent debts
• Past-due utility debts
• Majority of attorney fees
• Majority of civil court judgments
• Old tax penalties and some unpaid taxes
• Repossession deficiency charges
• Collection debts
• Benefit overpayments

Although those who declare Chapter 7 can discharge many unsecured debts, they cannot discharge:

• Some types of taxes
• Debts owed to a child or former spouse that occurred because of a divorce or legal separation, including alimony and child support
• Government agency fines and penalties
• Most student loans
• Attorney fees in child custody cases
• Court penalties and fines
• Personal injury damages owed to a victim because the plaintiff drove while intoxicated
• Money owed to certain types of cooperative housing organizations
• Money owed for some kinds of tax-advantaged retirement plans

Who Can Declare Chapter 7 Bankruptcy?

Whether or not you qualify for Chapter 7 bankruptcy will depend on your income. You determine your eligibility by considering your monthly income relative to the median income within your state. You calculate your monthly income by averaging your earnings in the last six months.

If you’re an individual considering filing, you’ll compare your monthly income to other individuals. But if you have a family, you’ll compare your income to other families of the same size. You qualify for Chapter 7 bankruptcy if your monthly average is equal to or less than the median in your state.

If your average monthly income is more than your state’s median, you’ll need to pass what’s known as a “means test.” This test determines whether you have disposable income at the end of each month to pay off your unsecured debts over five years. Suppose you have enough money left over each month after necessary expenses and debt payments. In that case, the bankruptcy court will recommend that you declare Chapter 13 bankruptcy, which consolidates your debts into a three-to-five-year repayment plan.

There are also other disqualifying factors for Chapter 7 bankruptcy, including:

• You’ve already received a Chapter 7 bankruptcy discharge in the last eight years
• You’ve declared Chapter 13 bankruptcy in the previous six years

What Do You Need to File Chapter 7 Bankruptcy?

The first step you need to take to declare Chapter 7 bankruptcy is to schedule a consultation with an experienced bankruptcy attorney. They will work with you to gather your financial records, including all of your debts, expenses, assets, and income streams. You’ll also need to supply the bankruptcy court with a list of creditors, an income statement, and copies of your tax records.

After gathering all necessary documents, you must undergo an approved credit counseling session within 180 days of filing. You’ll also need to supply the court with a certificate indicating  that you’ve undergone credit counseling.

Finally, you’ll file a petition for Chapter 7 bankruptcy. You’re not required to have legal counsel, but representing yourself through the bankruptcy process can lead to costly, irreversible mistakes. It’s recommended that you hire a Chapter 7 bankruptcy attorney who can represent you and guide you through the process before filing.

What Happens After You File Chapter 7 Bankruptcy?

Filing Chapter 7 bankruptcy provides you with an automatic stay that prohibits creditors from being able to take any action to collect a debt against you, such as repossessions, wage garnishment, and legal action. Additionally, your creditors will not be allowed to contact you.

After you file, the bankruptcy court will appoint a trustee who’s in charge of reviewing your case and for non-protected assets. Your attorney will explain what you are allowed to keep through the Chapter 7 process and what might be at risk. Once again, most of those filing for Chapter 7 bankruptcy do not lose their any of their possessions. Additionally, your bankruptcy trustee will hold what is called a meeting of creditors, and you are required to attend this meeting. Creditors are allowed to attend, but they rarely do.

The Chapter 7 bankruptcy process usually takes three to four months; once you complete the process, you will discharge your qualifying debts.

Filing Bankruptcy Chapter 7 in Indiana? Contact Sawin & Shea Bankruptcy Attorneys

If you plan on filing for Chapter 7 bankruptcy, you need experienced Indiana bankruptcy attorneys who can represent you and ensure you’re on the right track to becoming debt free. For experienced bankruptcy support you can count on, contact the attorneys at Sawin & Shea, LLC at 317-759-1483, or contact us online here for a FREE case consultation.

The post Who Can Declare Chapter 7 Bankruptcy? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Lack of necessary medical care

There are several ways that medical debt can affect your health, and many of them are the same ways that any financial insecurity can affect your health. For example, if you are in debt, you will be less apt to visit a doctor for problems with any chronic conditions – or even new medical conditions- you may suffer from. This can mean that diabetes, asthma, or high blood pressure issues go unchecked. It can also mean that necessary mental health precautions are left unaddressed. 

Inexpensive, “empty calorie” foods

Having debts can prevent people from meeting other basic needs as well. This is evident in food buying choices. On average, healthy foods cost three times as much per calorie as unhealthy options. Unfortunately, if you are weighed under by medical debt, it may be easier to buy less expensive foods with empty calories. These foods tend to have high amounts of sugar, saturated fat, and sodium, all of which can lead to obesity, high blood pressure, type 2 diabetes, and heart disease. Poor nutrition can adversely affect anyone’s health. 

Housing

Those with medical debt may also experience difficulties paying for safe housing or adequate utilities, such as heating and air conditioning. It has been documented that financial insecurity is linked to housing located far from green spaces that motivate people to exercise and provide recreational opportunities. One NIH study notes that “access to green spaces has been viewed as a principal key to enhancing health and well-being.” Lack of access to these green spaces can negatively affect your health.

Stress-driven behaviors

Another way that health behavior can be affected by medical debt is in unhealthy stress-driven behaviors. Many people smoke to relieve stress, but in fact, smoking causes stress-related illnesses. It causes increased blood pressure, elevated heart rates, constricted blood vessels, and a decrease in available oxygen. Even worse, 80% of lung cancers and lung cancer deaths are caused by smoking. Other harmful behaviors triggered by stress include alcohol or drug use, both of which negatively affect health. 

How Sawin & Shea, LLC can help

The Sycamore Institute concludes its report by saying that “A growing body of evidence connects medical debt with health outcomes” and reiterating the ”clear link between these factors and poorer health outcomes.” Obviously, medical debt can negatively affect your health. 

However, these negative impacts are not inevitable; you do have the option to take steps to either eliminate your medical debt or to make manageable payments towards it by filing for Chapter 7 or Chapter 13 bankruptcy.

Between 40% and 60% of bankruptcies are prompted by medical debt; this is a problem that is all too common. The ramifications of this kind of cycle of debt can be serious for your long-term financial health as well as your short and long-term physical and mental health. Filing for Chapter 7 bankruptcy can discharge (get rid of) medical debts as well as other unsecured debts as long as you have a low enough income to qualify for it. Chapter 13 bankruptcy can also be a road toward discharging your medical debts after you complete a 3-5 year payment plan. You can read about this in more detail in our blog, How Are Medical Bills Treated in Chapter 13 Bankruptcy?

At Sawin & Shea, LLC, we have over 75 years of bankruptcy experience helping thousands of people just like you get the fresh start they deserve. 

Speak to an attorney today at (317) 759-1483. Or contact us online. 

The post Study Shows Medical Debt Can Affect Your Health appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

To fully understand how this works, it helps to understand the basics of credit card debt when you are filing for bankruptcy, which we will dive into below. 

If you have further questions after reading this article or need help filing for your Chapter 7 bankruptcy or Chapter 13 bankruptcy, contact the Indianapolis bankruptcy attorneys at Sawin & Shea, LLC. 

Understanding Credit Card Debt and Bankruptcy

Most people file for bankruptcy in the hopes of having their debts that they are struggling to pay discharged. However, debt discharge for credit cards can work differently depending on the type of bankruptcy you file. 

Chapter 7: When you file for Chapter 7, you can have most, if not all, of your unsecured debts discharged, which includes your credit card debt. However, in exchange for having these debts wiped out, your non-exempt property could be sold by the bankruptcy trustee, and the funds will be used to pay off your creditors. 

Chapter 13: Filing for Chapter 13 works a little differently. With this type of bankruptcy, your credit card debts are generally not discharged upfront. Instead, you are given a more affordable payment plan that allows you to pay off your creditors with a monthly amount that is more suitable to your financial situation. 

This is important to understand because it can play a role in what happens if you run your credit card debt up. For example, if you run your credit card debt up and you file a Chapter 7, that debt could all get wiped out if the charges were necessary and not fraudulent. 

If you run the credit card debt up and then file a Chapter 13, you will still likely have to pay all of that debt off, but through a monthly payment—again, so long as the charges were legal and not found to be fraudulent.  

Running Up Credit Card Debt Prior to Bankruptcy

Generally, it is best not to use the credit card that you plan on including in your bankruptcy if you want your case to go as smoothly as possible. However, it is understandable that you may need to use your card for essential or necessary purchases, such as to pay for groceries, gas, or rent. 

However, if your creditors or bankruptcy trustee discover that you were running your balances up with fraudulent intent, it could result in serious consequences. For example, if you start making a bunch of unnecessary purchases knowing that you can just get away with not paying for them when you file for bankruptcy, this will likely be discovered. You could be charged with bankruptcy fraud or have your debt discharge denied. Likewise, taking out cash advances with your credit cards for unnecessary purchases can also be viewed as fraudulent. 

If your purchases are for necessary goods and services, then you should be fine, but if you made purchases with fraudulent intent, you could be asked to repay those debts. If you do not or cannot repay the debts, you could face an adversary proceeding lawsuit. 

Exceptions to Using Your Credit Card When Filing For Bankruptcy

Again, it is best to avoid using your credit card before filing for bankruptcy if you can, but the exception to using it will depend on whether you are purchasing what is considered necessary goods and services or luxury goods and services.

• Necessary goods and services: These are things that you need to live and support you and your family. This can include things like gas for your car to help you get to work, groceries to feed your family, or necessary clothing items, such as reasonably priced shoes for your child who needs them for physical education. 
• Luxury goods and services: These are things that you don’t need to work or live and are thus considered luxury and unnecessary. This can include buying designer brand items, vacation expenses, movie theater purchases, non-medical related spa purchases, etc.

How Sawin & Shea, LLC Can Help

At Sawin & Shea, we believe in providing compassionate and understanding representation to those struggling with debt and looking to file for bankruptcy. Being buried under overwhelming amounts of debt can be debilitating, and the last thing you need is to add more stress to the situation by worrying about your bankruptcy case. Our attorneys specialize in bankruptcy cases and can help walk you through the process every step of the way. We can even offer guidance after your bankruptcy case has ended. 

Contact us at 317-759-1483 or send us an email for a free consultation today!

The post Should I Max Out My Credit Cards Before Filing for Bankruptcy? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Businesses or individuals who collect debts on behalf of others are known as debt collectors. The majority of debt collectors work for reputable collection companies. Doctors, hospitals, shops, mail-order businesses, and occasionally banks and loan firms all use collection agencies. The majority of lawyers who collect debts on behalf of their clients are also considered “debt collectors” under federal law. In this blog, we discuss what debt collectors in Indiana can and cannot do according to the law. 

When Are Debts Covered By the Law?

The Fair Debt Collection Practices Act is a federal law that protects consumers from harassment from debt collectors. Under this law, debt collectors are required to treat consumers fairly, and consumers are given important rights. Personal, family, and household debts are all covered under this act. As an example, if you owe money to a jewelry store and the store tries to collect the money from you itself, it is not protected under the FDCPA. However, if the store hires a collection agency or attorney to collect the debt, these entities are covered by the act. 

What Debt Collectors Can and Cannot Do

It’s important to know your rights when dealing with debt collectors. These agencies must abide by the law. When they don’t, you may be eligible to sue the collection agency for violating consumer protection laws. It is illegal for debt collectors to engage in the following practices: 

Harassment

Debt collectors may not use language, engage in conduct, or communicate in ways that would harass, oppress, or abuse any person. Additionally, they may not:

• Threaten to harm your reputation, your body, or your property.
• Declare publicly that you owe money, or add your name among others who “refuse to pay their bills.” It is NOT prohibited by this for debt collectors to add accurate information to your credit report, however.
• Make use of vulgar or filthy words.
• Make your phone ring non-stop in a way that would be seen to be oppressive or unpleasant.
• Call you before 8:00 am or after 9:00 pm your time.

Though it is illegal for a debt collector to threaten you, they can pressure you to pay off your debt, which may include daily calls, frequent letters, or talk of pursuing a lawsuit against you.

False Statements

Specifically, debt collectors may not:

• Provide the erroneous impression that they are a lawyer or a representative of the government.
• Give the idea that you have broken the law or have done anything else wrong by not paying a debt.
• Convey a misleading sense of affiliation with or ownership of a credit bureau.
• Misrepresent the quantity, nature, or legal standing of a debt.
• Erroneously claim that the documents they are delivering to you are legal ones when they are not.
• Falsely state that the documents they are providing you are not legal documents when, in reality, they are. 
• State that they will take action against you even though they do not intend to or are unable to do so legally.

Debt collectors can, however, sue you for repayment of an unpaid debt as a last-ditch effort. Since debtors usually do not show up to court, these cases usually result in wage garnishment.

Unfairness

Debt collectors may not: 

• Attempt to collect any amount above the sum you actually owe, unless the law specifically permits such an amount.
• Deposit a postdated check more than five days before the check’s due date without notifying you in advance of their intended deposit time.
• Request a postdated check with the intention of threatening legal action or early cashing.
• Require you to pay for telegrams or collect calls.

Contact an Attorney Today

Do not allow yourself to be intimidated by these unfair practices. Call us today! The attorneys for Sawin & Shea have appeared on nearly 1,000 FDCPA cases and can help you possibly receive money before you file bankruptcy. If you believe that you have been the victim of unfair debt collection practices, please contact us. We take cases on a contingency fee basis, which means no money comes out of your pocket!

If you’re ready to receive assistance with your debts or if you want to learn more about how our attorneys can help, call us at 317-759-1483. You can also click here to schedule a free, no-risk consultation with one of our attorneys to review your situation.

The post What Debt Collectors Can and Cannot Do in Indiana appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

How do bankruptcy courts handle private student loans, however? Are private student loans treated differently by bankruptcy courts? In this article, we discuss if it’s possible to discharge a private student loan in bankruptcy. 

Understanding Federal Loans and Private Loans

Because federal student loans provide flexible, income-based repayment plans, deferments, forbearances, and loan forgiveness, they are less likely to be discharged in bankruptcy. These factors make it difficult for borrowers of student loans to demonstrate an unreasonable hardship.

But unlike the Department of Education, private student loan lenders don’t provide the same kinds of advantages. As a result, it’s frequently easier to declare bankruptcy and obtain a discharge for private student loans. In addition, new bankruptcy laws resulting from court decisions and proposed legislation may soon make it possible for borrowers to cancel their private loans without having to go through any additional hurdles.

Private student loans weren’t treated the same way as federal student loans until 2005, even though federal debts haven’t been dischargeable in bankruptcy since 1976. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) was passed by Congress to make it more complicated for borrowers to file for Chapter 7 bankruptcy and encourage more debtors to file for Chapter 13.

To prevent the bankruptcy discharge of school loans that did not exceed the student’s cost of attendance at specific higher education institutions, Congress changed 11 USC 523(a)(8) as part of the Act. These kinds of debts are called Qualified Education Loans. 

Different Types of Dischargeable Loans 

Some private loans for educational purposes can be discharged in a normal bankruptcy proceeding, just like most other consumer debts. For instance, a variety of student loan types, like most other forms of unsecured consumer debt, are dischargeable in bankruptcy. These loans for educational costs are exempt from the stricter requirements and additional steps.

These loans could include:

• Loans where the amount was higher than the cost of attendance (such as tuition, books, room and board), which can occur when a loan is paid directly to a consumer.
• Loans to pay for education at places that are not eligible for Title IV funding such as unaccredited colleges, a school in a foreign country, or unaccredited training and trade certificate programs.
• Loans made to cover fees and living expenses incurred while studying for the bar exam or other professional exams.
• Loans made to cover fees, living expenses, and moving costs associated with medical or dental residency.
• Loans to a student attending school less than half-time.

Common Reasons Private Loans May Be Discharged

Section 523(a)(8) of the U.S. Bankruptcy Code protects three types of education debt from discharge:

• Loans and benefit overpayments backed by the federal government or a nonprofit.
• Qualified private educational loans.
• Obligations to repay funds received as an educational benefit, scholarship, or stipend.

If a loan satisfies one of those three criteria, you can only discharge it if you can demonstrate that doing so would cause undue hardship. You must specifically demonstrate two things:

• You made a good faith effort to repay the debt.
• Your current and future financial situation doesn’t allow you to maintain a minimal standard of living for yourself and your dependents while making student loan payments throughout the repayment period.

Private student loans may be discharged without proving undue hardship if:

• A nonprofit did not back the loan.
• The loan exceeded your cost of attendance (i.e., education expenses set by your school’s financial aid office).
• The loan was not a conditional grant of money like an ROTC scholarship.

Contact a Student Loan Attorney Today

Our student loan lawyers can assist you with other student loan relief choices and programs as well as the process of student loan rehabilitation. We assist borrowers of student loans in moving on with their lives while also enhancing their credit histories and financial circumstances.

If you’re ready to receive assistance with your student loans or if you want to learn more about how student loan attorneys can help, call us at 317-759-1483. You can also click here to schedule a free, no-risk consultation with one of our attorneys to review your situation.

The post Can I Discharge a Private Student Loan in Bankruptcy? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Creditor harassment is unlawful, and there are many other things that debt collectors don’t want debtors to know to make it easier for them to get away with things they aren’t supposed to. 

This is why it is crucial for you as a debtor to know your rights and understand what is and is not okay when it comes to debt collection. This may be a stressful and scary time, but it does not have to overwhelm and ruin your life. Taking steps to understand your rights and the legalities surrounding debt collection can help you better navigate the situation. 

Below are the top five things that creditors and debt collectors don’t want you to know, as these tips can help you stand up for yourself against them: 

1. Debt Collectors Cannot Call Repeatedly

Initially, debt collectors will most likely try to call you several times a day, every day, and at all hours. However, you are technically in control and can dictate how and when they contact you. Constantly calling you can be construed as harassment, especially if you have already asked them not to. To ensure this doesn’t happen, record your calls and ask them to politely only contact you at your preferred method and time. For example, you could ask them to only email or mail you or ask them not to call at certain times of the day or on certain days. 

2. Debt Collectors Cannot Threaten You

In some situations, debt collectors may use intimidation tactics and threats to scare you into paying, but this is unlawful. Collection agencies are not allowed to claim that you have committed a crime and will be arrested if you don’t pay what you owe, nor can they threaten to ruin your life or shame you in public. 

By law, debt collectors can only discuss your debt with you, your spouse, or your attorney. They can contact others to track you down, but they may only ask for your address, phone number, and place of employment—they cannot discuss anything beyond that about your debt. 

3. You Can Negotiate Directly With the Creditor

Often, creditors will hire third-party collection agencies to handle their debt collection. Though collection agencies can offer to help you resolve the debt, it is sometimes better to negotiate directly with the creditor as it can result in a more affordable payment option and avoid unnecessary collector fees. 

After a debt collector has spoken to you initially about the situation, you can inform them that you are going to speak with your creditor first. However, keep in mind that if the debt is more than six months past the due date, the creditor does have the right to refuse to work with you directly. 

4. You Can Often Negotiate a Lower Settlement Amount

Debt collectors will initially try to collect all of the debt you owe, as this is their job. However, most collectors are authorized to settle on a reduced rate. In some cases, you can have the total amount of debt reduced by 15 to 35%. However, it’s important to note that settlement amounts are typically required to be paid in full. You will likely not be offered a new repayment plan but instead will be asked to pay the new reduced amount in full. 

5. There is a Statute of Limitations on Debt

You should never agree to a reduced settlement amount or a new repayment plan before checking on the statute of limitations on your debt. Debt collectors will never willingly inform you upfront about the statute of limitations, but it does exist. After so many years, debt collection can be barred and no longer allowed if the statute of limitations is passed. For example, there are cases where a debt collector may call after 5, 10, or 15 years to try to collect on a debt that is no longer valid. That debt may still exist, but they are no longer allowed to collect on it if it passes the statute of limitations.  

How Sawin & Shea, LLC Can Help

At Sawin & Shea, we believe in providing compassionate and understanding representation to those struggling with debt. If you feel that you are being harassed by a debt collector or have any other questions or concerns about your debt and how to manage it, contact the attorneys at Sawin & Shea, LLC. We can offer you guidance and support to ensure the best possible outcome. 

The post What You Should Know About Debt Collectors appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Those filing an emergency bankruptcy receive an automatic stay even before completing certain documents. An automatic stay is an injunction prohibiting creditors from collecting debts.

If you’re in an emergency situation such as wage garnishment, eviction, or pending repossession filing an emergency bankruptcy may be right for you. In this blog, we discuss when to file an emergency bankruptcy, how to file, and details about emergency bankruptcy abuse filing.

When to File an Emergency Bankruptcy

Individuals should file for an emergency bankruptcy in emergency situations, but what is “an emergency situation”? There is no exact definition that we can point to, but you need an adequate reason for why you’re filing for emergency bankruptcy. Some situations in which an individual may want to consider filing for emergency bankruptcy include:

• Wage garnishment
• Creditors levying your bank accounts or property
• An impending home foreclosure sale
• Imminent car repossession

It’s not always clear when it’s the right time to file for emergency bankruptcy. If you receive notification from a creditor or debt collector about them taking action against you, such as repossessing your property or filing a lawsuit, you need to speak with a bankruptcy lawyer immediately to determine your best course of action.

Filing for Emergency Bankruptcy

To start an emergency bankruptcy filing, some basic documents need to be filed with the court. A voluntary bankruptcy petition containing the Debtors contact information and chapter designation is prepared and signed. The Debtor(s) need to complete the required credit counseling session. Additionally, you need to include a creditor matrix, which lists all of your creditors and their addresses. A credit report pull will likely provide the bulk of that information. Finally, you need to submit form B121, which confirms your Social Security number.

If you fail to complete the balance of your schedules in the coming 14 days or so, the court can dismiss your case, and attempting to file again will be more difficult. If you attempt to file again within the same year of your initial filing, you’ll only be granted an automatic stay, the injunction protecting you from creditors, for 30 days unless the court extends it. You’ll need to file a motion to extend your automatic stay beyond 30 days, and you’ll need to explain the reason for the extension in court.

In addition to submitting these necessary forms, you’ll also need to pay some fees and costs.

What is Abuse Filing?

In 2005, the U.S. Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) to protect creditors from abusive bankruptcy filings.

But why would a bankruptcy filing be considered abusive?

If a person files serial bankruptcy cases that are dismissed for non-cooperation with the bankruptcy process, especially if it appears the cases were filed to hinder or delay other legal processes, could result in a time bar from filing future cases.

Other situations in which the court considers a bankruptcy filing abusive include:

• If they fail to appear in court
• If they fail to comply with a court order
• If they don’t make payments to their bankruptcy trustee

Unsure of Whether to File for an Emergency Bankruptcy? Contact a Bankruptcy Lawyer

Determining when to file for Chapter 7 or Chapter 13 bankruptcy is often unclear. Fortunately, you don’t need to undergo this process alone — you can contact a bankruptcy attorney to assist you in navigating the complex world of bankruptcy and overcoming debt. Creditors and debt-collectors often employ aggressive and unethical methods of collecting debts from borrowers, such as harassment, threats, and other forms of abuse. You need legal support to help you with your financial situation. 

For experienced bankruptcy attorneys in Indiana, contact Sawin & Shea, LLC. We’ve helped numerous individuals across Indiana with bankruptcy filing and overcoming debts, and we’ll help you deal with creditors attempting to intimidate you. If they engage in illegal debt collection practices, such as harassment, we can represent you to hold them accountable and collect damages. Call our office at 317-759-1483, or you can click here to schedule a FREE consultation with one of our bankruptcy attorneys.

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With credit card debt specifically, debtors often wonder how the process works and how it will affect their ability to still use current cards or open new ones in the future. We’ll walk you through some helpful information on filing for bankruptcy with credit card debt below, but if you’re ever unsure, working with an experienced bankruptcy attorney can help. They have years of experience helping those struggling with debt navigate the complicated legal process and get back on their feet.

What Happens to My Credit Card Debt When I File For Bankruptcy?

When you file for bankruptcy, you will be required to list all of your debts, including all of your credit cards. Once filed, your bankruptcy stops all collection actions against you. Ultimately, bankruptcies result in a discharge. This discharge stops any future collection of dischargeable debts. Credit cards, in almost every case, are dischargeable debts.

In Chapter 7 bankruptcy, most or even all of your unsecured debt will get discharged, including your credit card debt. However, in return for discharging your debts, you must give over your non-exempt property to a bankruptcy trustee. The funds from the sale of that property will be used to pay your creditors. Most Chapter 7 cases, however, are “no-asset cases” which means that the debtor in bankruptcy keeps everything in which they have an ownership interest.

In Chapter 13 bankruptcy, your debts are not discharged upfront. Instead, you will be required to pay what the law says you can afford to pay back your creditors through a repayment plan. The plans typically last around 3 to 5 years. A Chapter 13 is available to those that do not or can not qualify for a Chapter 7. It is also used to help debtors get caught up on things they are behind on, but that they would like to keep such as houses or cars. Credit cards, like most unsecured debts, get paid a partial amount in Chapter 13 and the debtor is then discharged of any further liability on the debt at the end of a plan

Exceptions to Discharging Credit Card Debt in Bankruptcy

While most debts do get wiped out after filing for bankruptcy, there are some exceptions. For example, if you are filing for Chapter 7 bankruptcy and your monthly income is more than your state’s median income, and it is believed that you can pay at least 25% of the debt, a discharge through chapter 7 will not be allowed. In this case, you will need to file a Chapter 13 bankruptcy instead, where a plan will be worked out for you to pay the amount the law requires you to pay before receiving a discharge on the balance.

Another reason some of your debt may not get discharged is if the creditor files an adversary proceeding because they believe that the charges made were an attempt to commit fraud. For example, if you charged more than $725 in luxury goods to a credit card within 90 days of filing for bankruptcy, your intent is presumed to be fraudulent. Additionally, if you took out a cash advance with any of your creditors worth more than $1000 within 70 days of filing, this will also be seen as an act of fraud. As a result, these debts may be considered non-dischargeable, and you may have a responsibility to pay them after your bankruptcy.

Building Credit After Bankruptcy

All of your credit cards, with the exception of some company cards, will be canceled and thus unusable during and after your bankruptcy.

While many individuals fear that their credit score and having just gone through bankruptcy will hinder them from getting any new loans or opening any new credit cards for a while, this is often not the case. Lots of creditors are willing to give debtors a chance, even after they’ve just come out of bankruptcy. Even if your credit is bad, if you have sufficient income, you will likely still be able to open new accounts and start rebuilding your credit shortly after your bankruptcy is over or, if you are in Chapter 13, during the life of the plan.

How Sawin & Shea, LLC Can Help

At Sawin & Shea, we believe in providing compassionate and understanding representation to those struggling with debt and looking to file for bankruptcy. Being buried under overwhelming amounts of debt can be debilitating, and the last thing you need is to add more stress to the situation by worrying about your bankruptcy case. Our attorneys have experience in bankruptcy cases and can help walk you through the process every step of the way. We can even offer guidance after your bankruptcy case has ended.

Contact us at 317-759-1483 or send us an email for a free consultation today!

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