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If almost 25 years as a debt consolidation lawyer writing and teaching about bankruptcy information in Indiana has taught me anything, it’s this: individual bankruptcy in Indiana and unemployment statistics go hand-in-hand.

Together with my colleagues in the Zuckerberg bankruptcy law offices in Bloomington, Anderson, and Indianapolis, I’m always following the news about Indiana jobs.  It’s important for us to know who’s hiring, who’s firing, who’s expanding, who’s downsizing.  Inevitably, we see the results of employment trends in the form of people needing Indiana bankruptcy help.

This being the beginning of July, the May unemployment statistics have just been released.  Nationally, according to the Indianapolis Star, unemployment fell in 37 states in May.  Six states had increased unemployment, and seven saw no change from the month before.  As an Indiana lawyer for bankruptcy, I had mixed feelings upon learning that Indiana was one of the states whose jobless rate remained the same as the previous month – 10%.  Not that new jobs haven’t been created – in fact, I’ve been writing about the many new opportunities that have already opened up or which are on the horizon for the next year or two.

I can tell things are not back to where they need to be, at least not yet.  I can tell by the increase in the number of people needing payday loan debt help, help in stopping foreclosure, and even student loan debt help.  In certain industries such as transportation, utilities, and construction there were net job losses, and in many cases I’m already seeing the results in the form of an increased number of people filing personal bankruptcy in Indiana.

The fact is, as any good bankruptcy attorney in Indiana can attest, clients emerging from bankruptcy need income from jobs.  If they’ve filed Chapter 7 bankruptcy, they need income to pay bills and get back on their financial feet.  Under Chapter 13 bankruptcy law in Indiana, clients need income to keep up with their three to five year debt repayment plans. 

i was sharing with the Columbus bankruptcy lawyers who are my colleagues that, as a longtime lawyer for bankruptcy, the way I see things is this:

Indiana may be better off than neighboring states when it comes to unemployment, but, however you slice it, a jobless rate of 10% isn’t good news!

 

According to a study by Saga Equity Release, 17% of over 50s are left with very little money to enjoy their retirement once they have repaid their debts, while 41% of retirees find repaying their debts difficult, headlinemoney.co.uk reports.

However, more and more over 60s are now taking out equity release plans to unlock money from their homes so they can enjoy a `better quality of life in retirement`.

Figures show that 13% of over 55s are retiring in debt, and 40% of this age group have used equity release as a way to repay these – leaving them `better off in real terms` and free to enjoy their retirement.

Executive Chairman of the Saga Group, Andrew Goodsell, said: “This study dispels the concept that equity release is the last resort for those who have nowhere else to turn. We have found that people are increasingly likely to use equity release to clear debts, enabling them a better quality of life in retirement.”

There’s been a lot in the news about the financial regulatory overhaul bill currently working itself out in Congress and, with the bill expected to be signed into law by the Fourth of July, it’s a good time to look at how you’re likely to benefit from the bill’s passage. Here’s a look at how various aspects of the legislation are likely to play out when the financial reform hits the books (adapted in part from this article).

Outlook Good for Consumers

One of the major changes the bill will make is the creation of the Consumer Financial Protection Agency, which would be a unit dedicated to regulating financial products with consumer rights in mind. The neces

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Odysseas Papadimitriou is founder and chief executive officer of Evolution Finance, which is the parent company for Wallet Blog and Card Hub—an online marketplace for credit card offers.

‘Credit or Debit?’ You’re used to hearing this question when checking out at the grocery store, but have you ever stopped to think about what your choice means in terms of your financial security?

Using a credit or debit card makes you vulnerable to fraud, but 62 percent of purchases in 2009 made using electronic payment methods* suggests that this fact is not stopping consumers from using their cards. Cash may be safer in terms of fraud, but it is simply not a practical option for our day-to-day needs. So this begs the question, ‘credit or debit?’ when it comes to fraud protection.

Fortunately, the major credit and debit card networks (i.e. VISA and MasterCard) adhere to a strict 0 percent liability policy for victims of fraud. That means that whatever money is stolen from you via your debit or credit card will be returned to you in full. That does n

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A great many questions I get asked by readers and by bankruptcy clients have to do with wage garnishment.  As a debt consolidation lawyer offering bankruptcy services in Indiana, I know how very upsetting it can be to have your pay garnished. You’re trying to hold onto a job during these hard times, and now you know that your employer knows – you’re having trouble keeping the bills paid!

Wage garnishment, just to review, is a legal procedure that starts when a creditor obtains a court order forcing an employer to withhold money from an employee’s paycheck for the repayment of debt.

A question similar to today’s reader question was posed in person to one of the Columbus bankruptcy lawyers in the Zuckerberg bankruptcy law offices there: Can a garnishment court order be obtained for debts that are years old, or is there a time limit?

The general answer to the question is this:

For credit card accounts or written contracts for paying money, the statute of limitations is six years.  That means if the debt is more than six years old, the creditor no longer has the option to garnish your wages to collect that debt.

On domestic judgments, by contrast, the limit is twenty years!  That means that on child support and alimony debts, the law is much, much stricter. Th

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If you are struggling with unmanageable debts that you don’t think you’ll ever be able to repay, but you can commit to making monthly payments at a reduced rate… an IVA (Individual Voluntary Arrangement) may be suitable for you.

An IVA, to put it simply, is a formal agreement between you and your unsecured creditors in which you’ll be required to pay as much as you can afford (per month) towards your debts.

Because an IVA is a formal agreement, once one has begun, you can’t change the terms of the agreement (without your lenders agreeing to it) – and nor can your lenders.

In most cases, an IVA will last for five years (60 months), but this may vary depending on the terms of your particular agreement and your ability to make payments towards your IVA throughout its duration. Once your IVA comes to a successful close (i.e. once you have made your final scheduled payment), your creditors will write off the debt you couldn’t afford to repay and you’ll be legally debt free.

Of course, as with any debt solution, there are several things you need to consider before entering an IVA. F Read more…

A new range of cash machines dispensing only £5 notes have been introduced across the UK to help people with their budget planning.

The move is being backed by the Bank of England and plans to get more £5 in circulation and let people withdraw smaller amounts, helping them plan their budgets and assist in debt management.

The scheme started as a pilot, dispensing £5 notes from two cash machines in London, one on Roman Road in the East End and one near Waterloo station but has now been rolled out nationwide and features 21 new machines in the network which will be in Martin McColl’s shops.

The managing director of Bank Machine, Ron Delnevo, said: “This is about real people on real budgets facing their own spending cuts. Whether you withdraw £50 or £5 at our machines it will all be in £5 notes. There is cast-iron proof that cash – and small denominations in particular – help people to budget, especially during these financially stretching times. With our ne

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One pitfall for debtors contemplating bankruptcy is contributing to an Educational Savings Account one year before filing for bankruptcy.  Generally, contributions to an education IRA under section 529 of the Internal Revenue Code (IRS) are excluded from the bankruptcy estate.  However, there are exceptions.  Under the bankruptcy code, 11 U.S.C. 541(b)(6), contributions made within one year before the petition is filed are not excluded.  Contributions greater than $5,850 per beneficiary made between two and three years before the petition is filed are not excluded either.

All is not lost if you fall into one of these exceptions.  You can still exempt these contributions under the wildcard exemption if sufficient amount is available.  Lesson learned – when contemplating bankruptcy contact a bankruptcy attorney before making any financial decisions.

Steven Striffler
Attorney At Law
21 McGrath Hwy, Suite 301
Quincy, MA 02169
617-290-1573
www.strifflerlaw.com

Practice is Focused on Bankruptcy & Construction Law

Chapter 7 bankruptcy involves liquidating assets to pay back creditors in exchange for a complete forgiveness or discharge of most debts. Among other duties, bankruptcy trustees are charged with the responsibility of evaluating a debtor’s assets to see whether there is anything of significant value that can be sold to pass on to creditors. Absolutely everything you own must be disclosed, however, only non-exempt property is subject to sale. It is important to understand that a bankruptcy trustee will primarily be interested in property that has equity. What is equity? Equity is the value of property after any debt that encumbers it has been subtracted from the overall value. For example, a car that has a blue book value of $20,000 with an outstanding loan balance of $15,000 has roughly $5,000 of equity.

If John W files bankruptcy owning a car with no equity (meaning he owes more than the car is worth) the bankruptcy trustee has nothing to distribute to creditors and will not come after the property. Any money gained from a potential sale of the car would be owed to the car lender. If y

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