Indianapolis Bankruptcy Lawyer Reads About Bankruptcy in the Indianapolis Star
It’s natural – my profession as a debt consolidation lawyer offering bankruptcy services in Indiana keeps me focused on unpaid debt. But, reading the Indianapolis Star a week or so ago, I realized I’m not the only one focused on the subject.
“Debt collectors have dumped a mountain of unpaid credit card obligations and other bills onto Indiana courts in a last-ditch effort to get Hoosiers to pay up,” says Star journalist Jon Murray.
Murray found that the large number of lawsuits have clogged up the court system is causing judges to quickly issue default judgments. With a court order in hand, creditors have the right to garnish paychecks and bank accounts.
All the good bankruptcy attorneys in Indiana who work in the Zuckerberg bankruptcy law offices in Indianapolis, Bloomington, and Anderson, along with the Columbus bankruptcy lawyers who work in my offices there was glad to hear that the FTC (Federal Trade Commission) is aware of the situation in the courts. In fact, as Jon Murray reports, “the FTC is urging states to adopt reforms to better protect consumers targeted by litigation.”
Meanwhile, along with my colleagues, I work hard to help clients put a halt to wage garnishment and asset garnishment through the automatic stay, which is one of the benefits of filing personal bankruptcy in Indiana.
As part of providing Indiana bankruptcy information through these Bankruptcy in Indiana articles, I think it’s important for me to stress certain things about judgments:
- When a judgment is entered against you, that automatically puts a lien on all real property you own in the county where that judgment was entered. (One exception to that rule is that, if the judgment is against you only, and the property is jointly held with your spouse, a lien can’t apply.)
- The creditor can try to come after your car, your household goods, money you have in the bank, and other possessions of yours. It’s crucial that you get legal advice immediately, because you have the right to claim certain “exemptions”. (As a debt consolidation lawyer in Indiana for close to 25 years, I helped write that portion of the new bankruptcy laws of Indiana that covers assets exempt from creditors’ claims.)
- Judgments go on your credit report, and could even affect your job (if your job is one that requires security clearance).
The automatic stay is a court order that stops those other court orders that creditors have obtained against you – dead in their tracks. The moment you file individual bankruptcy in Indiana, an order goes out from the bankruptcy court to all your creditors, telling them to leave you alone. They cannot repossess, take any assets, garnish your accounts or your wages.
The way I like to think of the automatic stay is simple:
The creditors have to stop, while you get to make a new start!
Similar Posts:
- Reader Question About New Banakruptcy Laws of Indiana: Is There A Statute of Limitations?
- The Automatic Stay In Bankruptcy
- My Creditors Are Violating the Automatic Stay
- Spousal Support Motion “Quacks” Like Support; Excepted From Automatic Stay Protection
- The Psychology and Emotion of Bankruptcy in Indiana
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