Consumers who wish to file for Chapter 13 bankruptcy Avon IN must qualify based on the means test initiated throughout the country. To pass the means test, the consumer’s income must be below the median income for Hendricks County. Currently, this average is $61,689 for married couples and $55,208 for singles. This further implies that he or she does not qualify for Chapter 13 bankruptcy, which requires a higher-income level.
Filing a Claim for Chapter 7 Bankruptcy
The claimant supplies proof of his or her income for the six-month period prior to submitting a claim. These records verify that they earned a qualifying income which renders them eligible. The claimant submits deeds or other proof of ownership for all properties that are included in the bankruptcy. This includes those that are exempt and properties scheduled for liquidation.
Next, the claimant provides a list of all accounts in which he or she wishes to include in the bankruptcy petition. These are all eligible debts, including unsecured debts and any that are past due or facing default. The attorney representing him or her requires an accurate list of these debts and balances. A judge makes a final decision in terms of which debts are discharged and, which are the responsibility of the claimant. Typically, credit card accounts that possess a low balance are discharged.
How Does Liquidation Work?
In Chapter 7 Bankruptcy in Avon IN, liquidation involves the sale of properties to generate funds for the settlement of all debts outlined in the claim. The Hendricks County court assigns a trustee to initiate and oversee the sale of these properties. He or she manages the distribution of funds to the creditors to pay off the debts. Any exemptions allowed for the properties is remitted to the claimant by the trustee.
The claimant attends the 341 meeting in which creditors have the opportunity to state whether they wish to have their respective debt included in the claim. In most cases, the creditors do not attend as this form of bankruptcy guarantees payment of the debt. The cost to file a Chapter 7 bankruptcy is $306. Any eligible consumers who wish to file a bankruptcy claim may Contact The Wright Law Group, LLC to schedule an appointment.