Experienced Fort Wayne bankruptcy attorneys will be well-versed in both federal bankruptcy laws and state bankruptcy laws. Both will affect your bankruptcy case. Fort Wayne bankruptcy attorneys will need to know much about how federal bankruptcy laws were changed back in 2005. While you can do all the things you could before in a bankruptcy case, the newer federal bankruptcy laws have at least made it a little bit more difficult to file for personal bankruptcy.
One of the main differences in federal bankruptcy laws is that it has become harder to file for chapter 7 personal bankruptcy. Fort Wayne bankruptcy attorneys sometimes call chapter 7 straight bankruptcy or liquidation. Chapter 7 personal bankruptcy involves a trustee appointed by federal bankruptcy court liquidating you nonexempt personal property to help pay back your creditors.
Bankruptcy exemptions save most of your essential personal property from liquidation. It is quite rare, especially with having hired Fort Wayne bankruptcy attorneys, for someone to lose their house or car during a bankruptcy case. There is a set of federal bankruptcy exemptions and, generally, also a set of state bankruptcy exemptions.
Different states have different laws about which bankruptcy exemptions you can use. The state of Indiana allows you to use both federal bankruptcy exemptions and also state bankruptcy exemptions during a chapter 7 bankruptcy case. You become eligible for chapter 7 personal bankruptcy by taking a means test.
The means test determines how much disposable income you have on hand. If your average monthly income is higher than the average monthly income for your state, then you are ineligible for chapter 7 personal bankruptcy. Your average monthly income must match that of the state you are filing in or should be lower.
While you will receive a chapter 7 personal bankruptcy discharge in a few months, it stays on your credit report for 10 years. This will not prevent you from rebuilding your credit since the dates of when you filed for bankruptcy and when you received a discharge will also be clearly marked.