Legal Question in Bankruptcy in Indiana

Re: Chapter 7?

Without knowing exactly how much the fair market value of the property is, I cannot give you but a general answer. Also the answer changes if both parties file. If she files alone, she gets to keep personal property worth up to $4,000.00. That is fair market value and for fair market value, think rummage sale prices. Double the amount if both file. Tell your sister-in-law that she needs to have a chat with an attorney as soon as possible. The Congress may very soon change the bankrutpcy law.

Re: Chapter 7?

Your assumptions about the financial condition of your sister and her husband could be incorrect. Therefore, they should take responsibility for their own situation and consult with a local bankrutpcy attorney. Most attorneys offer free or very low cost initial consultations. "Maiden name" by the way is a matter of no consequence so far as bankruptcy law is concerned.

Re: Chapter 7?

And I'll chime in as well. The problem with being behind on mortgage payments is that filing a chapter 7 will not help them cure the mortgage arrears. If the equity is exempt, then the trustee will abandon the property back to them. When the chapter 7 is over, they will likely still have the house AND still be behind on the payments. So if the want to use the bankruptcy process to catch up on the mortgage, chapter 7 is likely not the way to go. As other attorneys told you, they need to consult with a bankruptcy attorney who can verify their budget.