New Albany Bankruptcy Lawyers
A New Albany bankruptcy lawyer stops the calls, the garnishment, and the foreclosure clock by filing your case in the U.S. Bankruptcy Court for the Southern District of Indiana, New Albany Division. Protection begins the moment the case is filed, not weeks later.
You already know what the pressure feels like. The phone rings before breakfast, your paycheck comes up short because a creditor got a court order, and you check the mailbox hoping there is nothing from the sheriff.
Waiting almost always costs more. A judgment turns into a garnishment, a missed mortgage payment turns into a foreclosure filing, and the car you need for work gets towed from your driveway overnight.
O’Bryan Law Offices has guided more than 30,000 Kentucky and Southern Indiana families through Chapter 7 and Chapter 13 since 1994. Our New Albany bankruptcy lawyers handle consumer bankruptcy and nothing else, on a flat fee agreed before you commit.
You can request a free consultation with our New Albany bankruptcy team today.
How Our New Albany Bankruptcy Lawyers Help You
Most people who call us are not looking for a legal seminar. They want to know what we will actually do, and how fast. Here is what our team handles once you hire us:
- Stop collection immediately: We file your petition and notify your creditors, your employer’s payroll department, and any repossession or foreclosure agent involved. Garnishments must stop, and repossession agents must return the vehicle in most cases.
- Prepare the entire filing: We pull your credit reports, request your tax transcripts, complete the schedules, and handle the required document list so nothing gets missed.
- Run the eligibility math: We apply the Chapter 7 means test and compare it against a Chapter 13 plan payment before recommending anything.
- Protect your property: We apply Indiana’s exemptions to your home, vehicle, and savings, and we tell you honestly if something is at risk.
- File on an emergency basis when needed: If a sale date or garnishment is days away, we can prepare an emergency bankruptcy filing to trigger protection first and complete the paperwork after.
- Stay with you to discharge: One attorney and two dedicated paralegals are assigned to every case, so a quick question gets a quick answer.
What Bankruptcy Can and Cannot Do for You in Indiana
Bankruptcy is a federal tool, so the powers and the limits are the same in New Albany as they are anywhere else. What changes state to state is which property you keep.
| Bankruptcy Can | Bankruptcy Cannot |
|---|---|
| Stop a foreclosure sale and give you time to catch up on arrears | Erase child support or spousal maintenance |
| End wage garnishment and bank account levies | Discharge most student loans outside a hardship case |
| Wipe out credit card balances, medical bills, and personal loans | Remove recent income tax debt or criminal fines and restitution |
| Discharge income taxes that are old enough to qualify | Protect a co-signer from collection in a Chapter 7 case |
| Force repossession agents to return a recently seized vehicle | Wipe out debts you ran up through fraud |
| End creditor phone calls, letters, and collection lawsuits | Stop a criminal case or a domestic violence proceeding |
Indiana has opted out of the federal exemption system under IC 34-55-10-1, so New Albany filers use the state list rather than choosing the federal one. Our team applies that list to your specific property and tells you where you stand before anything is filed.
💡 Additional reading: why you should never pay a collection agency
Why Choose O'Bryan Law Offices as Your Bankruptcy Lawyer in New Albany, IN?
Founding attorney Julie O’Bryan has been board certified in consumer bankruptcy by the American Board of Bankruptcy Certification since 2003. She is one of only three board-certified consumer bankruptcy attorneys in Louisville and one of only six in Kentucky.
That credential is not a marketing badge. It requires serving as lead counsel in at least 20 litigated bankruptcy disputes, 60 hours of bankruptcy continuing legal education across three years, and a two-day examination.
Her record is publicly verifiable through her peer rating profile, her public attorney directory listing, and her peer recognition listing.
We also threw out the time clocks, so you are never billed for a quick question. Three words guide every case we take: Restart. Rebuild. Restore. You can read more about our team on our Who We Are page.
What Can O'Bryan Law Offices Offer You?
O’Bryan Law Offices takes a different approach to legal services than many firms in this region. We focus on consumer bankruptcy and the family law matters that surround it, which means our New Albany clients get depth rather than a generalist practice.
Exceptional service
Throughout the entirety of your case, we pledge to maintain consistent communication with you. It is imperative that you receive the best that our team can provide, so we will be there to answer your questions.
Our law firm will make sure that you make the best possible decisions for both you and your family. By staying connected with you, we can answer your questions, walk you through the bankruptcy process, and advise you on life after bankruptcy.
Guidance and reputation
Not only do we pride ourselves on communication with clients, but we also offer guidance and a stellar reputation among our peers. Since 1994, our law firm has offered a wide range of services, including help stopping wage garnishment.
It is perfectly normal to feel overwhelmed by the processes of bankruptcy and family law. We understand that you have a busy schedule and that you might not have time to fill out a mountain of paperwork.
Our approach is both educational and proactive. We tackle the tough stuff for you while also helping you learn how the process works.
Full-service legal representation
Our Indiana attorneys offer a broad spectrum of consumer bankruptcy services to every one of our clients. The debt relief solutions we offer are highly personalized, meaning we do our best to fully learn your individual situation before offering advice.
Practical and achievable debt relief is what we strive to obtain for our clients. Even before you make the decision to file, our team will advise you on how to rebuild the strongest credit score your circumstances allow.
Trustworthy Kentucky and Indiana lawyers
There is nothing more important to us than earning and maintaining a client relationship built on trust. From the very beginning, any sensitive or confidential information you relay to us will be kept strictly confidential.
We maintain offices in both Kentucky and Indiana, and we are skilled with the laws of both states. That dual footing lets us advise cross-river families that other firms in this market cannot serve on both sides.
Community-Focused Legal Services You Can Rely On
One of the most important parts of our job is helping clients across Indiana achieve financial freedom. We hold our communities close to our hearts, so helping out in any way we can is our ultimate goal.
Through the Southern District bankruptcy courts of Indiana, we have helped countless New Albany residents file for bankruptcy. Floyd, Clark, and Harrison County families make up a large share of the Indiana cases we handle each year.
When the people within our communities achieve debt relief and financial stability, the community as a whole becomes stronger. As members of that community, we take the impact our law firm has on New Albany seriously.
Bankruptcy in New Albany: Which Court Handles Your Case
Bankruptcy is federal law, so your case is heard in federal court rather than in Floyd County Circuit Court. The New Albany Division of the U.S. Bankruptcy Court for the Southern District of Indiana sits at 121 West Spring Street and handles cases from 15 Indiana counties: Clark, Crawford, Dearborn, Floyd, Harrison, Jackson, Jefferson, Jennings, Lawrence, Ohio, Orange, Ripley, Scott, Switzerland, and Washington.
Here is the path a typical case follows:
- Free planning session: We call it a Fresh Start Planning Session. Our experienced team reviews your income, debts, and property and tells you which chapter fits.
- Credit counseling course: Federal law requires an approved briefing within 180 days before filing. It usually takes about an hour online.
- Document gathering: We collect pay stubs, tax returns, and account statements while our office pulls your credit reports and tax transcripts.
- Filing the petition: The automatic stay begins the second the clerk receives your case, and we notify creditors that day.
- Meeting of creditors: Roughly 21 to 40 days after filing, a trustee asks you questions under oath. Most meetings run under ten minutes.
- Plan confirmation or trustee review: Chapter 13 plans go before a judge for confirmation. Chapter 7 cases move to trustee review of your exemptions.
- Discharge: The court wipes out the qualifying debts, and creditors are permanently barred from collecting them.
Hearing formats in this division have shifted in recent years, and the Indiana State Bar Association is one place residents can confirm an attorney’s standing before hiring. Our office checks the current location and format with the court for every client, so you always know where to be and what to expect.
💡 Additional reading: how to file bankruptcy chapter 7
Chapter 7 vs. Chapter 13 Bankruptcy in Indiana
We file Chapter 7 and Chapter 13 cases only. The right choice usually comes down to your income, your home equity, and whether you are behind on a secured payment.
| Feature | Chapter 7 | Chapter 13 |
|---|---|---|
| Typical duration | 3 to 4 months | 3 to 5 years |
| Income requirement | Must pass the means test | Must have regular income |
| Debt relief | Most unsecured debt discharged | Partial repayment, then discharge |
| Property protection | Non-exempt assets may be sold | Keep assets while repaying |
| Co-signer protection | None | Co-debtor stay applies to consumer debts |
| Mortgage arrears | Cannot be cured through the case | Can be repaid over the plan term |
| Second mortgage stripping | Not available | Possible when the home is worth less than the first mortgage |
| Attorney fee timing | Generally paid before filing | Largely paid through the plan |
Chapter 13 gives you tools Chapter 7 does not, but it only works if the plan payment is realistic from day one. Our team builds the plan around what your budget can actually carry, and if Chapter 7 is the cleaner answer for you, we will say so.
💡 Additional reading: pros and cons of chapter 13
Which Debts Bankruptcy Can Erase
Most household debt is dischargeable. The exceptions are narrower than people expect, and we review every debt on your list during the planning session.
Debts that are usually wiped out include:
- Credit cards
- Medical bills
- Personal loans
- Payday loans
- Old utility balances
- Deficiency balances after a repossession
- Most judgments
- Income taxes old enough to meet the discharge rules
Timing is everything on the tax side, which is why we walk clients through whether bankruptcy clears tax debt before choosing a filing date.
Debts that survive include:
- Child support
- Spousal maintenance
- Most student loans
- Income taxes from recent years
- Court fines and restitution
- Debts incurred through fraud
Several of these can still be managed inside a Chapter 13 plan, and our attorneys will show you which of your accounts fall into that category.
Protecting Your Property With Indiana Bankruptcy Exemptions
Indiana’s exemptions are set by statute and adjusted by the Indiana Department of Financial Institutions roughly every six years. The current amounts took effect on March 1, 2022, and are not due to change again until March 1, 2028, at the latest.
Exemption | Single filer | Married couple filing jointly | Statute |
Personal or family residence | $22,750 | $45,500 | IC 34-55-10-2(c)(1) |
Other real estate and tangible property | $12,100 | $24,200 | IC 34-55-10-2(c)(2) |
Intangible personal property | $450 | $900 | IC 34-55-10-2(c)(3) |
Professionally prescribed health aids | Fully exempt | Fully exempt | IC 34-55-10-2(c)(4) |
Two details in that table catch New Albany filers off guard. Indiana has no separate vehicle exemption, so your car comes out of the same $12,100 bucket as your furniture and your work tools.
The second is a cross-river trap. Under Section 522(b)(3) of the Bankruptcy Code, you must be domiciled in Indiana for 730 days before filing to use the Indiana exemption list.
Someone who moved from Louisville to New Albany fourteen months ago will likely file under Kentucky’s exemption scheme instead. The two states protect very different amounts of home equity, so that timing question can decide whether a house is safe.
Our attorneys check the domicile calendar first whenever a client has moved between Kentucky and Indiana recently. Sometimes we will advise waiting a few weeks to file, because that alone can change the entire outcome.
💡 Additional reading: if I file bankruptcy, what happens to my car
How the Automatic Stay Stops Creditors
The automatic stay is a federal court order that takes effect instantly when your case is filed. No hearing is needed, and no creditor has to agree to it.
- Creditor calls and letters: All collection contact must stop. Creditors who keep calling after receiving notice can be held in contempt.
- Wage garnishment: Your employer must stop withholding. Money garnished after the filing date usually has to be returned to you.
- Bank levies: A freeze or levy on your account must be released.
- Foreclosure: A scheduled sale is halted, even if it is set for the next morning.
- Repossession: Lenders cannot take your vehicle, and a car seized shortly before filing generally has to come back.
- Utility shutoff: Service must be maintained or restored for at least 20 days, though the company can request a deposit.
- Lawsuits and judgments: Pending collection suits are frozen where they stand.
The stay will not stop a criminal prosecution, a paternity action, a case to establish or collect child support, or a domestic violence proceeding. It also does not stop a tax audit, though it does stop the IRS from seizing property.
A secured lender can also ask the judge to lift the protection, and we defend clients against a motion for relief from the automatic stay when one is filed. Filers who have used bankruptcy recently may receive a stay lasting only 30 days, so our team identifies that risk before filing and asks the court to extend the stay where the law allows.
What Happens to Co-Signers When You File
This is the question that keeps people from filing for years. If a parent co-signed your car loan, filing Chapter 7 discharges your liability but leaves theirs completely intact.
Chapter 13 works differently. The co-debtor stay under Section 1301 of the Bankruptcy Code shields a co-signer on consumer debts for as long as your plan is paying that debt.
Protecting a family relationship is a legitimate reason to choose Chapter 13, and we treat it as one. Our attorneys ask about co-signed debts at the first meeting and structure the case so the people who helped you are not the ones who pay for it.
💡 Additional reading: does filing bankruptcy affect your spouse
Your Job and Your Credit After Bankruptcy
Section 525 of the Bankruptcy Code makes it illegal for any government employer to fire you, refuse to hire you, or deny you a license because you filed bankruptcy. Private employers are barred from firing you for the same reason.
The hiring side is where the protection thins out. Courts have generally held that Section 525 does not stop a private employer from declining to hire someone over a bankruptcy filing, though most employers never check.
Filings are court records, and we explain exactly how bankruptcy shows up as public record so nothing about the process catches you off guard. On credit, a Chapter 7 can stay on your report for up to 10 years and a Chapter 13 for up to 7 years.
Most of our clients see secured credit card offers within weeks of discharge and qualify for market rate car loans well inside two years. We map out a realistic rebuilding plan with you before your case closes, so the path back to a mortgage is clear from the start.
What It Costs to File Bankruptcy in New Albany
Costs shift with the complexity of your case, so treat these as ballpark figures rather than quotes. Court filing fees are set federally and are identical in Indiana and Kentucky.
Expense | Chapter 7 | Chapter 13 |
Court filing fee | $338 | $313 |
Attorney fees (typical) | $1,500 to $2,500 | $4,500 to $4,750 |
Credit counseling course | About $15 | About $15 |
Debtor education course | About $15 | About $15 |
In Chapter 13, most of the attorney fee is built into the plan payment rather than paid up front. One point worth stating plainly: the court does not offer fee waivers based on income falling below 150 percent of the federal poverty line, and neither do we.
We quote a flat fee at your first meeting and stand by it, so the number you hear from our team is the number you pay.
💡 Additional reading: how much does bankruptcy Chapter 7 cost
Alternatives to Bankruptcy Worth Considering First
We will not recommend bankruptcy if something simpler solves your problem. Three alternatives come up most often, and each carries a real drawback.
- Debt consolidation: Rolling several balances into one loan can lower your monthly payment. It only helps if you qualify for a rate low enough to beat what you pay now, and it does nothing about an underlying income gap.
- Debt negotiation or settlement: Creditors sometimes accept less than the full balance. Forgiven debt can become taxable income, and the pros and cons of debt settlement are worth weighing before you sign with any company.
- Debt management plans: A nonprofit credit counseling agency negotiates lower interest and consolidates your payments. These plans typically run three to five years and require every participating creditor to agree.
None of these carries an automatic stay, so a garnishment or foreclosure already in motion will keep moving. Our team will tell you candidly which of these is worth pursuing in your situation and which would only delay the relief you need.
We Will Carry the Hard Part of This for You
You do not have to work out which chapter fits, which exemptions apply, or whether a recent move across the river changed the math. That is our job, and our attorneys and paralegals have been doing it for New Albany families for three decades.
Our experienced team will review your situation, explain your options in plain language, and give you a flat fee before you commit to anything. The pressure you are under right now has an end date, and it starts with a conversation.
Speak with our New Albany bankruptcy team by calling (502) 339-0222 today.
Frequently Asked Questions
Can I file bankruptcy in Indiana without my spouse if the debt is only in my name?
Yes. Indiana allows individual filing when the debt sits in one name, and O’Bryan Law Offices files single-spouse cases in New Albany regularly. Your spouse’s income still counts in the Chapter 7 means test, and jointly signed debts remain fully collectible against them even after your discharge.
What happens to my tax refund if I file bankruptcy in Indiana?
A tax refund you have not yet received counts as property of your Indiana bankruptcy estate. The federal earned income credit portion is fully exempt under IC 34-55-10-2(c)(11), and the remainder must fit within your $450 intangible personal property exemption. Timing your filing carefully often protects the full amount.
Do I have to list every creditor when I file bankruptcy, even ones I want to keep paying?
Federal law requires every debt to appear on your bankruptcy schedules, including family loans and accounts you plan to keep current. Omitting one can jeopardize your discharge. Listing a debt does not obligate you to stop paying it, and O’Bryan Law Offices reviews each account before filing.
How long do I have to wait to file bankruptcy again if I already filed once in Indiana?
Refiling windows run from filing date to filing date under federal bankruptcy law. Chapter 7 to Chapter 7 requires eight years, Chapter 13 to Chapter 13 requires two years, Chapter 7 to Chapter 13 requires four years, and Chapter 13 to Chapter 7 generally requires six years.
I live in New Albany but work in Louisville, so which bankruptcy court do I file in?
Bankruptcy venue depends on residence, not employment. A New Albany resident who commutes to Louisville still files in the U.S. Bankruptcy Court for the Southern District of Indiana, New Albany Division, provided they lived in Indiana for the greater part of the preceding 180 days.
Can I get a car loan while my Chapter 13 plan is still active in Indiana?
Yes, but the bankruptcy court must approve new debt while a Chapter 13 plan is active. Most Indiana trustees require a written motion showing the vehicle is necessary and the payment is affordable. O’Bryan Law Offices files these motions for clients throughout the New Albany Division.