Indianapolis Attorney For Bankruptcy Reacts to Unemployment Benefits Ruling
Yesterday in Bankruptcy in Indiana, I mentioned the fact that Congress has just rejected the Unemployment Extension Bill. Let’s talk about what that could mean to you Indiana 
bankruptcy clients and readers.
If you’re already collecting unemployment payments, you will still collect for any weeks remaining on your present “tier” of benefits. There will be no renewals, though. If you were already on Extended Benefits, the payments stopped June 13, even if you had money remaining on your claim.
- Unemployment benefits are exempt property for purposes of bankruptcy. That means that if you file personal bankruptcy in Indiana and you still have benefit payments coming to you, you will be allowed to keep that money to use towards your own living expenses, rather than using it to pay towards debts. (As a debt consolidation lawyer offering bankruptcy services in Indiana, I helped write the exemptions portion of the new bankruptcy laws of Indiana.)
- What’s more, as any good bankruptcy attorney in Indiana can tell you, unemployment benefits cannot generally be garnished by creditors. (One of the Columbus bankruptcy lawyers in the Zuckerberg bankruptcy law offices reminded me to add that alimony and child support may be exceptions to this rule.)
- As a long-time Indianapolis bankruptcy attorney, I want to repeat an alert from the Indiana Attorney General’s office about a new scam that targets unemployed people. This scam involves bogus text messages telling recipients their benefit debit cards from unemployment have been cancelled. If you receive this type message, do not respond! Most important, be careful not to share personal information.
Losing your unemployment benefits might mean you need help to stop foreclosure on your home. Or, the loss of benefits may lead you to withdraw money from your qualified retirement plan (401k, 403b, or IRA). Before going down that path, learn more about mortgage modification and about filing personal bankruptcy in Indiana in order to save your retirement plan assets.
Congress’ decision, whether it proves right or wrong, can have huge consequences for you. It’s crucial that you seek out experienced legal help!
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- Unemployment, the 99ers, and You
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- Bankruptcy Information in Indiana Tied to Indiana Employment News
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