Lawrenceburg Indiana Bankruptcy and Estate Planning Blog

If you are one of the many people in Indiana who cringes every time you look at your bank balance or go to the mailbox and see a pile of bills waiting for you, you may well be wondering how you can get out from under a seemingly endless supply of debt. In evaluating your options for this and for creating a brighter financial future for yourself, it is important that you understand the differences in the two primary forms of debt - secured and unsecured.

As explained by NerdWallet, with unsecured debt there is no risk that you will lose a precious asset because the debt is not associated with any particular item. In a Chapter 7 bankruptcy, these type of debts are generally discharged and no further action is needed. Examples of unsecured debt include most credit cards, medical bills and even student loans.

Providing financially for one's children after death has long been a common desire of people in Indiana. The legacy that can be created through an inheritance can be both sentimental and financially beneficial for generations to come. In addition to leaving something for your children, you may be particularly interested in ensuring that your grandchildren receive something from your inheritance. Such a desire is part of why the generation-skipping trust has been developed.

As the Motley Fool explains, the generation-skipping trust may be just the ticket to provide financial assets for your children's children but there are certain things you will want to know and evaluate as you consider this type of trust. One of these is the taxation model associated with a GST. When not carefully created, a GST may leave your assets vulnerable to a high level of taxation.

Writing a will might currently be the furthest thing from your mind. You might have confidence that your family in Lawrenceburg is closely knit enough to disperse your assets without there being any contention. Why, then, risk hurting someone's feelings by creating a will? The main reason is because of what will potentially happen if you die intestate. 

Dying intestate simply means that you died without a will. Authority over how your estate is distributed, however, does not automatically go to your family. Rather, the state determines how assets are dispersed through a process known as "intestate succession." Your surviving spouse is the most immediate beneficiary of this law. Per Section 29-1-2-1 of Indiana's Probate Code, he or she is entitled to the following portion of your intestate estate: 

• 50 percent if you are survived by any other issue (direct descendants)
• 75 percent if you have no surviving issue, but your parents are still alive
• 100 percent if you have no surviving issue or parents

If you are one of the many people in Indiana who cringe when it is time to go to the mailbox for fear that you will receive yet another bill, you are not alone. You may also likely avoid answering your phone or even checking your email in the event that a debt collector is once again contacting you. Even if you know you that you legitimately owe on a particular debt, when you do not have the money to pay it, you may experience severe stress.

For many, the thought of bankruptcy may be equally stressful. However, NerdWallet explains that it may be time for you to take a fresh look at bankruptcy and understand how it very well may be the most beneficial option for you. Certainly, bankruptcy can eliminate some of your debt but there are other benefits to be had as well. Ultimately, filing for bankruptcy may give you the best access to new credit with which to re-establish your financial life. This is in part due to the fact that your debt-to-income ratio will be much better after you file for bankruptcy.