With the current trend in the economy affecting more and more businesses every day it is important to understand the process of bankruptcy in Indianapolis. It is sad but true that bankruptcy is becoming more common across the country every day.

Bankruptcy in United States is the domain of Congress and is handled by Federal District Court. There are state laws added to fill in the gaps for the situations that are not very clear in the federal law. This might have some impact on the state to state variations even though the bankruptcy proceedings remain similar throughout the country.

How to proceed with bankruptcy in Indianapolis

The first step is to find an attorney and schedule a consultation. Your attorney will help you to identify the chapter to file under. The next step is to complete the paperwork and file the petition with the court. The petition is required to be filed in the federal court and appear before a federal judge. Your attorney can help you to find the court clerk of your region or you can also contact the state’s federal district court office.

It is recommended and also advised by federal courts to get help from an attorney to complete the paperwork required for bankruptcy in Indianapolis as the paperwork is complex and detailed. Paper work accuracy is important as few simple mistakes can make a court dismiss your case and it might be a long time, maybe another year or so before you can re-apply.

How to determine your chapter for bankruptcy in Indianapolis

Chapter 7, Chapter 13, and Chapter 11 are the most common chapters of bankruptcy. Chapter 11 bankruptcy is mainly used by partnerships and corporations and rarely by sole proprietors. This is essentially a reorganization plan affecting the business and its assets and making the officers and employees liable.

A Chapter 13 bankruptcy is used by small businesses and sole proprietorships. This is also a reorganization plan that helps sole proprietors protect their personal assets from seizure.

Chapter 7 is also known as liquidation and is used by individuals. Under this chapter the court gets the authority to seize and sell your assets to pay-off the debts. Any debts that remain after the pay off are automatically wiped out.

Paperwork required for bankruptcy in Indianapolis

For Chapter 11 or 13 petitions, you’ll need to show a detailed plan to pay off the debts. For chapter 7 you will need provide a complete list of assets to the court. Any additional paperwork required will need to be completed. You can file your petition only when all the required paperwork is complete.

For Chapter 7 or 13 filings, federal law also requires you to seek consumer credit counseling from an accredited agency and add the certificate of the proof in your petition paperwork. Check with your state regulation if you are required to submit to debt consolidation services as well.

If you are planning to file for bankruptcy Indianapolis, it is recommended to consult with an attorney. Contact Darrel J. Dolan for more legal information.