Indiana Bankruptcy Attorney Explains Affidavit

In Indiana, we’re far from out of the woods when it comes to keeping people in their homes – or when it comes to selling homes. These are facts that I, as a debt consolidation lawyer, along with the good bankruptcy attorneys in Indiana who work in the four Zuckerberg bankruptcy law offices, know all too well.  For the past three years, as I’ve been writing in these Bankruptcy in Indiana articles, we’ve all spent a great deal of time negotiating mortgage modifications in order to help stop foreclosures.

Of course, all of us involved in providing bankruptcy services in Indiana have become practiced in helping our Indiana bankruptcy clients complete all the paperwork.  (There are quite a few forms that need to be submitted to the bankruptcy court as part of filing personal bankruptcy in Indiana or small business bankruptcy in Indiana.) In addition to those, though, in recent years, though, we’ve all gotten lots of practice filling out two particular forms:

  1. My income has been reduced or lost.
  2. My household financial circumstances have changed due to illness, disability, death in family.
  3. My expenses have increased – monthly mortgage payment reset, high medical costs, uninsured losses due to fire or natural disaster, increased real estate taxes. (One of the Columbus bankruptcy lawyers who is my colleague there often finds out that clients under so much financial stress often drop part of their property-casualty insurance coverage.)
  4. My cash reserves are insufficient to maintain my mortgage payments and still cover living expenses.
  5. My monthly debt payments are excessive and I am overextended with creditors. (Often, as an Indianapolis lawyer for bankruptcy, this is where clients will reveal they need payday loan debt help!)
  6. There are other reasons (debtor needs to explain what those are). (Several lawyers for bankruptcy in Indiana shared with me that a need for student loan debt help was revealed in discussing all the pressures clients were going through.)

Borrowers then sign the bottom portion of the affidavit form, saying they understand that if the lender discovers they’ve submitted incorrect information, the mortgage servicer can cancel the agreement and move forward with foreclosure. Meanwhile, we wait, the clients and I, hoping for the kind of timely response from the mortgage servicer that too often does not happen.

Whether the Request and the Affidavit result in any or all of the outcomes we hoping for,

I have the satisfaction of knowing I’ve helped a debtor be proactive. The backup plan might turn out to be Chapter 13 bankruptcy in Indiana!

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