According to a recent Indianapolis Business Journal article, the number of Chapter 7 bankruptcy and Chapter 13 bankruptcy filings has decreased for the fiscal year ending September 30, 2011, from the 2010 fiscal year.  However, new bankruptcy filings in the Southern District of Indiana, which includes Indianapolis bankruptcies, still totaled 24,727 for the fiscal year.

Indiana is currently ranked sixth in the nation, down from fourth, for the number of Chapter 7 bankruptcy filings and ranks eleventh, down from tenth, in the nation for the number of Chapter 13 bankruptcy filings.

The decrease in new filings can be partially attributed to the willingness of creditors to delay lawsuit collection activities against debtors because the difficulty trying to collect judgments from unemployed debtors.  Creditors are more reluctant to spend money pursuing lawsuits if they aren’t going to be able to recover.  Indiana is following the national trend where overall bankruptcies are down eight percent from the previous fiscal year.

As a dedicated Indianapolis bankruptcy lawyer, attorney Scott Kainrath, personally reviews every potential bankruptcy in great detail to make a determination if filing bankruptcy is the best option.  The timing of bankruptcy filing can potentially save a debtor hundreds, or even thousands, of dollars.   In many cases bankruptcy is not the best option.  At Kainrath Law Firm, P.C., we also assist debtors with debt settlement.  Many times we are able to negotiate debts down to a fraction of their original amount, allowing bankruptcy to avoided altogether.

If you are unsure as to whether filing bankruptcy is right for your particular situation, talk to a competent bankruptcy lawyer to personally review your individual case.