In this blog, we’ll share the details regarding this exemption increase, the different exemption categories, and how these exemptions impact Chapter 7 and Chapter 13 bankruptcy.

What Are Bankruptcy Exemptions?

Bankruptcy exemptions refer to tangible or intangible assets protected from seizure when you file for bankruptcy.

If you’re filing for Chapter 7 bankruptcy, you can retain exempt assets and protect them from seizure but only up to a particular point. The court-appointed bankruptcy trustee can confiscate any non-exempt assets to liquidate in order to pay back some of your debts. That said, the majority of those who file for Chapter 7 bankruptcy are able to keep all of their possessions.   

In Chapter 13 bankruptcy, you pool your debts into a three-to-five-year repayment plan, and you get to keep your property. These exemptions still apply because they decrease the amount that you’ll need to pay back to creditors with your repayment plan.

Why Did Bankruptcy Exemptions Increase in Indiana?

Last year, the Indiana Department of Financial Institutions (IDFI) increased the bankruptcy exemption amounts. This is standard procedure, as the IDFI updates the allowable exemption amount every six years to reflect inflation.

How the IDFI calculates this increase is through the United States Department of Labor’s Consumer Price Index for All Urban Consumers. The economic disruption caused by the COVID-19 pandemic and other factors surged inflation rates, and the IDFI adjusted bankruptcy exemptions to keep pace with new rates. These exemptions went into effect on March 1, 2022.

What Assets Are Exempt When Filing for Bankruptcy?

Before we dive into the new exemption amounts, it’s worth noting these different exemption types. The two main exemptions you can expect when filing for bankruptcy are the homestead exemption and wildcard exemption.

The homestead exemption allows for debtors to protect their home’s equity, and this applies to either residential property or personal property that’s used as a residence, such as a trailer. It’s important to note that the homestead exemption will not protect your equity in a secondary residential property, such as a rental or lake house.

The personal property exemption protects a certain amount of tangible and.The tangible assets could include equity in secondary residential property, a vehicle, household items, furniture, clothing, jewelry, or any other personal property.

The intangible assets exemption looks at cash or cash equivalents and include money in a debtor’s bank account, inheritance, tax refunds, claims against others, or any other non-physical asset.

2023 Bankruptcy Exemptions Indiana

The new bankruptcy exemption amounts in Indiana are:

• Homestead Exemption: The amount of protected equity increased from $19,300 to $22,750.

• Wildcard Tangible Asset Exemption:  You can exempt tangible property that’s worth up to $12,100, an increase from $10,250.

• Wildcard Intangible Asset Exemption: You can now protect up to $450 in intangible personal property while the previous amount was only $400.

2023 Married Filing Jointly Bankruptcy Exemptions

You should note that the exemption amounts above apply to individual debtors. Those married and filing jointly can exempt twice the amount, meaning:

• Homestead Exemption: $45,500

• Wildcard Tangible Asset Exemption: $24,200

• Wildcard Intangible Asset Exemption: $900

Are There Any Other Bankruptcy Exemptions in Indiana?

In addition to these new exemption amounts, you may have other exemptions, including different types of benefits, accounts, and personal property.

• Personal Property: Includes health aids, spendthrift trusts, tuition programs, education savings accounts, and military uniforms and equipment.

• Benefits: Indiana protects retirement benefits, which can include pensions, IRA accounts, retirement funds, and other types of retirement benefit plans.

• Insurance: Insurance policies and benefits are exempt, including fraternal society benefits and life insurance policies in which the debtor’s children, spouse, or dependent relatives are beneficiaries.

• Miscellaneous: Other protected assets include unemployment benefits, some partnership properties, workers’ compensation, and a percentage of unpaid wages.

Contact an Indianapolis Bankruptcy Lawyer

Facing bankruptcy is a daunting prospect, and the process can be incredibly confusing. To ensure that you file correctly and receive the maximum exemptions, consider contacting a bankruptcy attorney who will assist you through the process. 

If you’re considering filing for bankruptcy in Indianapolis or surrounding counties, contact the lawyers at Sawin & Shea, LLC. We’ll untangle the complexities of filing for bankruptcy and will help you get your finances back on track so that you can eventually live debt free. Plus, we’ll help you deal with conflict that arises from your financial situation, such as creditor harassment.

You can schedule a free consultation today by calling 317-759-1483 or by contacting us online here.

The post Indiana Increased Bankruptcy Exemptions in 2022. Here’s How it Affects You. appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Fortunately, filing for bankruptcy offers debt relief to help you get your finances back in order, but you’ll need to avoid certain pitfalls when filing, such as overspending or accumulating more debt.

Here’s what you need to know about getting through the holidays during bankruptcy. 

Don’t Accumulate Any More Debt

If you’re already in the middle of filing for bankruptcy, any new debt that you accumulate will not be discharged. This includes credit card debt, so try to avoid racking up a substantial balance this season.

Those who are about to file for bankruptcy should also avoid accumulating substantial debt. Many debtors make the mistake of racking up more debt before filing because they figure that they’ll be able to discharge it. This is even more common during the holiday season because people spend a great deal on travel plans, gifts, and food. 

When you have a sudden increase in debt leading up to filing for bankruptcy, credit card companies may object to your bankruptcy discharge. They may even argue that you committed bankruptcy fraud, which is a federal felony. Those found guilty of bankruptcy fraud could face up to a five-year prison sentence and up to a $250,000 fine. 

Don’t Purchase Expensive Luxury Items

Although some holiday expenses are unavoidable, you should definitely avoid spending over $600 on a single luxury purchase. An item may be considered a “luxury” if it’s a product or service that’s not necessary to support you or your dependents. If you’re not sure whether some of your purchases are considered “luxury,” consult with a Chapter 7 or Chapter 13 bankruptcy attorney. 

If you make a luxury purchase of over $600 within 90 days of filing for bankruptcy, creditors will request for the bankruptcy court to not discharge the debt. This also includes gifts, so it’s critical not to spend over $600 on any one gift.

Some debtors attempt to avoid the luxury item bankruptcy provision by taking a cash advance on their credit card, but this will also likely not work. If you take a cash advance of over $950 within 70 days of filing for bankruptcy, the credit card company will argue against your debt being discharged. 

How to Cut Down on Spending This Holiday Season

It’s best to avoid accumulating more debt during the holidays, and you can do this by creating a tight budget and by staying clear of any holiday sales that may increase your spending. 

When creating your budget, calculate how much you can reasonably spend without falling into further debt. Then, create a list of necessary holiday expenses. It’s critically important to avoid going over budget this holiday season as you prepare to file for bankruptcy or continue going through the filing process.

You can also find creative ways to reduce your spending, such as introducing a Secret Santa gift exchange in your family. That way, you’re not having to purchase a gift for every member of your family. 

Additionally, if you’re hosting extended family or friends for the holidays, you can introduce a potluck system so that you don’t need to spend as much on food. 

Bankruptcy Automatic Stay

Although you need to tighten your belt and avoid more debt this holiday season, filing for bankruptcy does provide certain protections and benefits that may alleviate some of your financial stress, such as an automatic stay. 

When filing for Chapter 13 bankruptcy, your home’s mortgage payments will be restructured into your repayment plan, and creditors will not be able to repossess your home or take legal action against you thanks to the bankruptcy automatic stay. 

With Chapter 7 bankruptcy, you reaffirm your secured debts while discharging unsecured debts. Secured debts refer to debts with collateral, such as a home or car. Most of the time, Chapter 7 filers are able to reaffirm their mortgages as long as they are not behind on payments. 

If you are behind on a house or car payment, you may want to consider filing for Chapter 13 bankruptcy. 

Contact an Indiana Bankruptcy Attorney

If you need help getting started with filing bankruptcy this holiday season, consider enlisting the services of Chapter 13 or Chapter 7 bankruptcy lawyers. Qualified bankruptcy attorneys can help you improve your financial situation and can assist you if you’re the victim of creditor harassment. 
For seasoned bankruptcy attorneys in Indiana, contact Sawin & Shea, LLC. We have years of experience helping Indiana residents become debt free. Call us today at 317-759-1483, or you can schedule a FREE consultation online here.

The post How to Survive the Holidays During Bankruptcy appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

One common question that filers have regarding the Chapter 13 process involves income increases and whether they affect payment plans. An increase in income will likely impact your Chapter 13 repayment plan, and you are obligated to report wage increases to your bankruptcy trustee. 

If you have further questions regarding filing for Chapter 13 bankruptcy, your best course of action may be to enlist the assistance of Chapter 13 bankruptcy lawyers. Seasoned bankruptcy lawyers can untangle the complex intricacies of filing, and they can help you create a financial plan for becoming debt free. For experienced Chapter 13 bankruptcy attorneys in Indiana, contact the offices of Sawin & Shea, LLC. 

What If My Income Increases During Chapter 13 Bankruptcy?

When filing Chapter 13 bankruptcy, it’s important to note that the court determines your repayment plan based on your income minus any necessary daily-living expenses, such as food, rent, utilities, health care, and transportation. If you receive a pay increase and your cost of living remains the same, you’ll likely need to pay more on your repayment plan, but that’s not always the case. 

The specific language of your repayment plan can impact whether or not you’ll need to pay more after receiving a bump in income, and if your increase in income isn’t significant, you might not be obligated to make larger payments. 

Regardless of the amount of your Chapter 13 income increase, you need to report it to your bankruptcy trustee. Whether or not your payments increase will depend on your updated income compared to your expenses, so if your cost of living increases with your new income — for example, if you have to relocate to a more expensive part of the country for a new job — you might not need to make additional payments. 

Additionally, if your Chapter 13 plan pays back all of your unsecured creditors, the court will likely not require you to make increased payments. If you decide to make greater payments in this scenario, you’ll complete the bankruptcy process faster. 

What If I Receive a Bonus During the Chapter 13 Process?

You must report your bonuses to your bankruptcy trustee. If the bonus amount is insignificant, you’ll likely be able to keep it, but a substantial bonus will affect your repayment plan. 

If you typically receive yearly or quarterly bonuses, you need to report them to your bankruptcy trustee when beginning the Chapter 13 process. Your bonuses will impact your Chapter 13 payment plan. 

Can I Keep the Money From My Side Hustle?

The Chapter 13 payment plan takes all of your finances into account and not just the wages from your primary job. If you have a side business or another source of income, you must report your earnings to your bankruptcy trustee. 

What If My Spouse Receives an Income Increase?

When determining your Chapter 13 payment plan, your bankruptcy trustee evaluates your household’s disposable income. This means that your spouse’s wage increases, side hustles, and bonuses directly affect your Chapter 13 payment plan. 

Fortunately, you can use your spouse’s expenses to reduce the amount of disposable income. For example, you can deduct what both you AND your spouse spend on food, utilities, housing, etc. Additionally, your spouse’s debts do not impact your payment plan unless they’re filing with you. 

Will the Chapter 13 Bankruptcy Trustee Check My Income?

A Chapter 13 bankruptcy trustee will usually not closely monitor a person’s income during the bankruptcy process, but they have every right to request proof of your income and pay stubs. It’s not their responsibility to scrutinize your finances for any wage increases, so you need to report changes in your income. 

If you fail to report an income increase to your bankruptcy trustee, you can lose the right to discharge your debts, and the court may dismiss your bankruptcy case. 

Additionally, you may even face federal charges for consciously failing to report an income increase during Chapter 13 bankruptcy. You could face bankruptcy fraud charges, which come with a penalty of up to $250,000 and five years in prison.  

Reporting a Change in Income

Fortunately, reporting a Chapter 13 income increase is a simple process. All you need to do is contact your bankruptcy trustee and inform them of the increase. 

Before reporting the increase, you can also consult with a bankruptcy attorney. Bankruptcy attorneys specialize in assisting debtors with their finances and the filing process. They may be able to give you options that reduce the amount you’ll need to pay in the updated payment plan. 

Contact an Indiana Chapter 13 Bankruptcy Attorney

If you’re looking for experienced Chapter 13 bankruptcy lawyers in Indianapolis, contact Sawin & Shea, LLC. We’ve helped numerous Indiana residents become debt-free through filing assistance and financial planning, and we also help our clients by stopping creditor harassment. To answer the question, “What if my income increases during Chapter 13?” and any other bankruptcy questions, call us today at 317-759-1483, or you can click here to schedule a FREE consultation. 

The post What If My Income Increases During Chapter 13? 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.

Having to deal with a barrage of phone calls, emails, and texts at the same time is like adding insult to injury. You may feel as if no one is on your side, but you do have some protection from collection agencies. They don’t have carte blanche to do whatever they want.

The FTC (Federal Trade Commission) is an arm of the United States government that enforces consumer protection and antitrust laws. The FTC makes sure that the FDCPA (Fair Debt Consumer Protection Act) is followed by collection agencies.

• There are approximately 7,000 collection agencies in the U.S.
• Collection agencies have an annual revenue of about $4 billion.
• Approximately one third of consumers with a credit bureau file were contacted by at least one creditor or debt collector each year, according to a CFPB (Consumer Financial Protection Bureau) survey.
• The FDCPA applies only to debt collectors (the third-party collection agencies), not to the original lender.
• Collection agencies may have been hired by original lenders to recoup debts or they may have bought old debts from the original creditors at a vastly reduced cost.

It will be helpful for you to know exactly what debt collectors are allowed to do, and even more helpful to be informed about what they are expressly forbidden to do.

Collectors are not allowed to:

1. Threaten to harm you or anyone around you.
2. Use abusive or obscene language.
3. Humiliate you by publishing your name and debts. This includes sending postcards that could be read by others.
4. Call you repeatedly.
5. Put you in prison. However, if they sue you and you don’t show up in court, you may lose your case and be ordered to pay your debt. If you do not show up of subsequent proceedings after the judgement is entered the court could enter a warrant for your arrest for contempt of court. Please contact an attorney for more information.
6. Call before 8:00 a.m. or after 9:00 p.m.
7. Lie to you (for instance, by claiming that they will arrest you or by telling you a different amount than what you actually owe, or by pretending to be from a government agency).
8. Contact you at work if you have written to tell them not to.
9. Contact you at all if you have written to tell them not to or if you have informed them that you have hired an attorney. (In this case, they must communicate only with the attorney, going forward.)
10. Contact your family members or anyone else more than once. They may only do this to find your address or contact information and may not disclose your debt. Also, on these phone calls, they may not disclose that they are a collection agency unless they are specifically asked.
11. Neglect to send you a written notice within 5 days of first contacting you. The notice (validation letter) must provide information stating exactly how much money you owe and to whom. It must also provide instructions on how to pay your debt and inform you that you have 30 days to dispute the debt.
12. Chase after you to pay a debt that you don’t actually owe.
13. Sue you after the statute of limitations has passed (although they can still try to collect the debt). The statute of limitations (also called time-barred debt) in Indiana is 6 years, except for auto debt and tax debt.

On November 30, 2020, the CFPB added some additional prohibitions to debt collectors. They are forbidden to:

1. Call you more than 7 times in a 7-day period.
2. Call you within a week after actually speaking to you by phone.
3. Give information about a debt to a credit bureau without having informed you by phone or email first.

Collectors are allowed to:

1. Call you or send letters to you. In November 2020, the CFPB ruled that collectors are also allowed to email and text you.
2. Contact a third party to try to find you, but may only ask for your address, phone number, and place of employment.
3. Sue you. If you lose, you may have your wages garnished or levies placed on your bank account, but that is done by the court, not directly by the collection agency.
4. Negotiate a lower amount for you to pay off your debt. This sometimes happens when your debt has been purchased for pennies on the dollar by a third company, and you should be extremely careful to get everything in writing. You may wish to consult with an experienced attorney before you take a step like this in order to make sure that you are protected.
5. Sell your debt to yet another collection agency.

If a third-party collection agency violates any of the provisions in the FDCPA, you have the right to hire an attorney and take them to court. You could be awarded up to $1,000 plus attorney fees and court costs, plus even more money if your attorney can prove that you suffered actual damages as a result of the violations.

In general, a qualified legal professional 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 pursue collection agencies who violate the FDCPA law, during and after your bankruptcy case. If you are struggling with belligerent calls, contact us at 317-759-1483 or Send an Email for a Free Consultation. We are ready to help.

The post Things Debt Collectors Are Forbidden to Do appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Yes, you can file bankruptcy without your spouse. But there are some important things you should know because bankruptcy can affect your debts and property in unexpected ways.

Community Property vs. Marital Property States

Many states are community property states, meaning property acquired during the marriage is considered shared regardless of who paid for it or whose name is on the title. In a community property state, property like a car or house is equally shared between the spouses and will be included in the bankruptcy even if your spouse’s name isn’t on it.

However, Indiana is a non-community property state, also known as a marital property state, common law property state, or equitable distribution state. This means each spouse is only responsible for their partner’s debt if they have voluntarily joined the debt, for example by co-signing on a loan.

This is good news for Indiana residents. If you file bankruptcy without your spouse, they won’t be on the hook for any debts that aren’t in their name. Debts that are only in your name can be discharged, leaving the two of you in a much better financial position when the bankruptcy concludes.

Does it Make Sense to File Without Your Spouse?

Whether or not you file with your spouse depends on many factors. Here are some things to think about before going this route.

Whose name is on most of the debts? If your name alone is on them, it might make sense for you to file bankruptcy without your spouse. Also, how good is your spouse’s credit? If your spouse has great credit but you don’t, clearing up your debts through bankruptcy could eventually leave you both with high scores.

It’s a good idea to consider potential windfalls of money, too. For example, if your spouse could soon receive an inheritance, you may want to file alone and keep their inheritance safely out of the bankruptcy.

Another consideration is whether your spouse has already filed for bankruptcy in the past. A recent bankruptcy could prevent them from filing again but you could still do it alone. Or you may want to preserve their ability to file in the future, just in case.

Protecting Your Property, Personal Items, and Privacy

People often wonder whether filing bankruptcy without their spouse will protect their home, car, and treasured personal possessions. Will filing alone safeguard these things and prevent your spouse from being hounded for payments?

In Indiana, if your spouse’s name is on the debt, they can still be pursued for payments after the debt is discharged in your name. This means a foreclosure, repossession, garnishment, or other action can continue against your spouse even after you’re freed of it through bankruptcy – but only if their name is on the debt.

This is certainly something to consider before filing bankruptcy without your spouse. However, don’t give up hope if your spouse’s name is on much of your debt.

Indiana allows you to protect your home and some types of personal property through exemptions. An Indiana homestead exemption, for example, could protect the family home so you don’t lose it. Ask your bankruptcy attorney about applicable exemptions.

You’ll also need to choose between Chapter 7 or Chapter 13 bankruptcy. If you opt for Chapter 13, an automatic co-debtor stay prevents creditors from hassling either you or your spouse about shared debts. But a Chapter 7 automatic stay applies only to you, allowing creditors to keep contacting your spouse.

This is especially important because a recent change to federal bankruptcy law encourages creditors to bother debtors on social media and increases the frequency of allowable texts and emails. Now’s the time to initiate bankruptcy and avoid creditor harassment!

Questions About Bankruptcy? We Can Help.

If you still have questions about filing for bankruptcy with or without your spouse, please reach out to the team at Sawin & Shea. We offer a free video consultation so it’s easy to clear up your concerns and start the road to financial recovery.

Sawin & Shea — Indianapolis Bankruptcy Attorneys

Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process.

Please do not hesitate to call us today at (317) 759-1483 or send an email for a free consultation. We are ready to help.

The post Filing Bankruptcy Without Your Spouse: What Happens to Debts & Property? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

There are many reasons why people resist bankruptcy, but some are based on fiction rather than facts. Maybe you’re avoiding bankruptcy merely because of a mistaken impression about it, so let’s clear things up.

Assuming It Is Rarely Needed

If you think bankruptcy is rare, think again. Plenty of people file for bankruptcy each year — possibly including your friends and family, even if they didn’t tell you about it.

In recent years, just over 750,000 Americans per year have filed for Chapter 7, Chapter 11, or Chapter 13 bankruptcy. For some years, this figure has been as high as 1 million Americans per year.

Thinking Employed People Do Not Need Bankruptcy

Job loss is certainly one of the top reasons for choosing bankruptcy, but it’s not the only reason. Many people who file for bankruptcy are employed but are still struggling to manage their monthly payments.

Medical debt is a top reason. Other common reasons for bankruptcy include divorce, excessive use of credit, new illness or disability, failed business ventures, and unexpected life circumstances that create debt and/or lower the household income.

Fear of the Future

People sometimes avoid bankruptcy because they’re afraid it will prevent them from accomplishing their life goals. This isn’t the case at all. Life after bankruptcy could look much better than it does now.

Here are some positive things that happen during and after bankruptcy:

• Collection calls stop.
• Your bills become manageable.
• You have a clearer view of your finances.
• Your credit score starts to rise again.
• Your financial burden eases, and you get a fresh start.

Worrying About Your Credit Score

Although many people assume that bankruptcy will ruin their credit score forever, that’s not true. In some cases, your credit score will suffer temporarily as you go through bankruptcy, but if you’re already failing to pay your bills, your credit is taking a huge hit as it is.

When you opt for bankruptcy, your credit will be on the upswing within a few years. It may even occur much faster than that. Just months after filing for bankruptcy, many people find new credit card offers in their mailboxes because the credit bureaus are already reporting a better score.

Wanting to Buy a House

Contrary to popular belief, bankruptcy doesn’t ruin the dream of becoming a homeowner. During a Chapter 7 bankruptcy, you’ll likely be ineligible to get a home loan. But afterward, it’s a different story. Some people in Chapter 13 bankruptcy cases can qualify to purchase a home while the case is active.

Many mortgage lenders are willing to work with homebuyers who have previously been through bankruptcy. As long as you’ve continued to pay your bills while avoiding getting yourself deeply in debt again, you should be able to buy a house.

If you’re already a homeowner when you file for bankruptcy, talk to your bankruptcy lawyer about using a homestead exemption to keep your house. Exemptions protect certain property and prevent you from losing it during bankruptcy.

Preferring to Keep Things Private

Maybe you’re worried about filing for bankruptcy because you don’t want everyone gossiping about you. But bankruptcy isn’t as public as you might think. The days of publishing personal bankruptcies in newspapers are long gone!

Bankruptcies are public information, but it takes a specific search of courthouse records to find them. Your bankruptcy won’t be published on social media. In most cases, nobody knows about a bankruptcy unless you tell them about it.

High-Pressure Tactics from Creditors

Finally, we’d like to address fears that arise from creditor harassment. Creditors often put immense pressure on debtors, and they might even tell you half-truths or outright lies as a way of tricking you into making a payment.

Don’t let creditors pester you into believing payment is the only option. Bankruptcy uses the law to stop creditors from contacting you. If creditors continue contacting you during your bankruptcy period, they risk breaking the law and owing hefty fines.

Feeling Resistant to Bankruptcy? We Can Help.

If you still have questions and worries about filing for bankruptcy, please reach out to the team at Sawin & Shea. It’s normal to have these concerns, and we’d love to help ease your mind about the bankruptcy process and its potential benefits for you.

We have great compassion for people who are buried in debt. At Sawin & Shea, we offer a free video consultation so that it’s easy to clear up any questions you may have and get you on the road to financial recovery.

Sawin & Shea — Indianapolis Bankruptcy Attorneys

Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process.

Please do not hesitate to call us today at (317) 759-1483 or send an email for a free consultation. We are ready to help.

The post Why People Resist Bankruptcy appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Car repossession is one of the many reasons people contact the Indiana bankruptcy attorneys here at Sawin & Shea. Losing your car can completely disrupt your life and work, so you may wonder what you can possibly do to prevent it.

Here’s some good news: You don’t have to just give up and allow your car to be repossessed. You may still have the option of keeping your car through bankruptcy. Let’s look at what you can do to prevent losing your car.

Bankruptcy Offers a Way to Keep Your Vehicle

Chapter 13 bankruptcy, also known as a reorganization bankruptcy, stops a car repossession in its tracks using something known as the automatic stay. It halts collection efforts and gives you the opportunity to reorganize your debts, including vehicle payments, preventing the loan company from taking your car.

During your Chapter 13 bankruptcy, unsecured creditors are forced to take payments in only the amount the law says you can afford or have to pay. You stay under the court’s protection, which continues to stop collection efforts until the end of your bankruptcy.

If the car loan company keeps contacting you or repossesses your car during your bankruptcy plan, they could be breaking the law. At Sawin & Shea, we help our clients put the law to work for them by holding creditors responsible for bankruptcy law violations and creditor harassment.

With the help of a bankruptcy attorney, you can pursue options like demanding compensation for harassment, modifying the terms of your car loan, reducing your interest rate, and perhaps paying only what the vehicle is worth without all the penalty payments piled on top. These benefits come as a huge relief for people who are deeply in debt.

Recent Supreme Court Decision Means Timing Matters

Until recently, there was still a bit of wiggle room with the timing of getting a repossessed car back immediately. It meant you could have your car repossessed, file for Chapter 13 bankruptcy, and have your car back in your possession fairly quickly.

However, a recent Supreme Court decision means it’s now very important to file your bankruptcy case prior to your car being repossessed. It’s more difficult now, but still possible, to get your car back if it is repossessed before you file a Chapter 13 bankruptcy.

While it’s still possible to regain possession of a repossessed car, now it will require a court hearing and a bankruptcy judge’s ruling. During that time, you may be without a car. In this situation, there’s not much you or your lawyer can do about it until the bankruptcy court grinds along in their process.

Filing for Bankruptcy ASAP

As you can see, it’s more important than ever to contact a bankruptcy attorney immediately if you’re getting behind on car payments. Don’t let a car repossession happen without talking to an attorney first. The earlier you contact us, the more time and options you have.

We can potentially help you file your bankruptcy case prior to repossession and prevent losing your car for even a moment. Talk to Sawin & Shea today for a free consultation that will get the process moving as quickly as possible.

Sawin & Shea—Indianapolis Bankruptcy Attorneys

Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process.

Please do not hesitate to call us today at (317) 759-1483 or send an email for a free consultation. We are ready to help.

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On top of phone calls, emails, and text messages, the Consumer Financial Protection Bureau (CFPB) will allow debt collectors to message you through Facebook, Instagram, Twitter, and almost any other social media channel.

The new rule also loosens the restrictions on how often creditors can contact you. You could receive unlimited texts and social media messages unless you take action to stop them.

If all this sounds extremely annoying, you’re absolutely right. Here’s what you need to know about the CFPB rule change and its potential impact on your life.

Why Did They Change the Rules for Debt Collection Messages?

The CFPB says the new rules better reflect modern communication and will ultimately be a win for consumers. Although debt collectors can contact debtors in new ways, people can also opt-out of being contacted entirely.

Or at least that’s the plan. So far, there’s no mechanism to opt-out and the CFPB is still working on that part of the process.

Here’s what the new CFPB rules will allow:

• Up to seven phone calls per week, plus more under some circumstances
• Unlimited emails
• Unlimited text messages
• Unlimited private social media messages/chats/posts

Will Creditors Really Contact Me On Social Media?

Debt collection agencies can’t wait for the new rules to go into effect later this year. Many debt collectors already push the boundaries of what’s allowed, contacting people relentlessly and sometimes violating the Fair Debt Collection Practices Act (FDCPA).

So far, social media companies like Twitter and Facebook have no comment about the CFPB rule change. Will they do anything to prevent their users from being barraged with messages? Who knows.

Even if a debt collector hasn’t contacted you on social media yet, they could be looking up your profile to find ammunition to use against you. It’s well known that debt collectors, lawyers, the IRS, and the Social Security Administration look people up on social media during investigations.

They might flip through your photos to see if you’re taking vacations or scan through your posts to see if you’re buying new things. Social media channels are also full of scammers, so be cautious about anyone who demands money.

It’s your right to request mailed verification of any debt before making a payment. While it’s illegal for creditors to lie about your debt or misrepresent who they are, some of them still do it.

Stop Debt Collection Efforts with Bankruptcy

As you can see, this is just the latest way debt collectors are trying to pressure people into sending payments. But here’s some good news: You can stop debt collection messages once and for all.

Bankruptcy triggers something known as an automatic stay, which prevents debt collectors from continuing to contact you under penalty of law. When the new CFPB rules go into effect, bankruptcy could be the best way to stop creditor harassment.

Contact a bankruptcy attorney to learn how to protect yourself from endless creditor calls and messages. At Sawin & Shea, we offer a free consultation to get the process moving quickly.

Sawin & Shea—Indianapolis Bankruptcy Attorneys

Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process.

Please do not hesitate to call us today at (317) 759-1483 or send an email for a free consultation. We are ready to help.

The post Soon, Debt Collectors Can Contact You on Social Media appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Are you receiving collection letters while working with a bankruptcy attorney? Save every single letter, even though you will have a lot of paperwork piling up.

Your bankruptcy attorney needs these letters because they could benefit you. Let’s take a look at why you should save collection letters and share them with your attorney.

Some Collection Notices are Unlawful

The first reason your attorney needs these letters is to review them and ensure your creditors are following the law. Federal law limits debt collection efforts and makes it clear that creditors are breaking the law under certain circumstances.

Creditors are governed by the Fair Debt Collection Practices Act. As such, they’re required to only send collection letters that are truthful, correct, not misleading, and do not provide false information.

Many collection companies, however, skirt these rules and do not comply. They might send you something that appears to be from a government office when it’s really from a for-profit collection company. Or they might misstate the amount you owe or the penalties for not paying.

Your Bankruptcy Lawyer Reviews Letters with an Experienced Eye

At the Law Offices of Sawin & Shea, we provide our clients with the service of personally reviewing each of these collection letters to see if they’re in compliance. If not, you could potentially turn the tables on your creditors and sue them for improper collection notices.

This is a significant level of compensation you could potentially receive, aside from your other arrangements for your bankruptcy. By law, you can recover substantial monetary damages of $1,000 or potentially more, depending on the nature of the letter and violation.

Stand Up to Debt Collectors Who Don’t Follow the Law

This is an opportunity to prevent creditor harassment and hold creditors and debt collectors accountable for a failure to follow the law. As you can see, it’s a valuable bankruptcy strategy that arises from hiring the experienced bankruptcy attorneys at Sawin & Shea.

Call us today for a free consultation. We’re here to help you manage the paperwork in your bankruptcy, minimize your hassle, and make sure your creditors are respecting the law.

Sawin & Shea—Indianapolis Bankruptcy Attorneys

Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process.

Please do not hesitate to call us today at (317) 759-1483 or send an email for a free consultation. We are ready to help.

Video Transcript:
Good afternoon. This is Richard Shea with Sawin & Shea. As you’re looking at your information after you’ve retained our office, we have asked you to set aside and save any and all collection letters that you are receiving.
 You’re maybe wondering why am I doing this? This is a lot of paperwork to gather up and provide to the office. Well, the reason why we ask for this information is so that we can make sure that we’re protecting you and also potentially turn the tables on your creditors and sue them for improper collection notices.
Creditors are governed by the Fair Debt Collection Practices Act. And as such, they’re required to only send collection letters which are truthful, correct, and are not being misleading or providing false information. Many time collection companies, though, skirt these rules and do not comply. And if that is the case, and one of the reasons why we ask for these collection letters is so that we can personally review each of these letters to see if they’re in compliance.
If those letters are not in compliance, we can then turn the tables and we can sue that collector, and you can recover substantial monetary damages of $1,000 or potentially more, depending upon what the nature of the letter and the violation is. If you have questions, please give us a call back, (317) 255-2600. Thank you.

The post Why It’s Important to Set Aside and Save Your Collection Letters appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.