Indiana bankruptcy cases increased 10.6 percent in the Northern district and 5.3 percent in the Southern district during the twelve-month period ending June 30, 2006 compared to the same period in the previous year.

Indiana bankruptcy courts in the Northern district processed 23,416 cases and the Southern district processed 36,553 cases for the twelve months ending in June 2006. The Indiana bankruptcy courts may continue to process increased numbers of bankruptcy cases in the last two quarters of 2006.

Arizona bankruptcy filings were up to 2261 for the second quarter of 2006. Arizona bankruptcy courts handled 1,430 cases in the first quarter of 2006. That is an increase of more than 50 percent.

Despite the bankruptcy law changes last year, Arizona bankruptcy filings have been rising throughout 2006. Increasingly, consumers are realizing that the impact of the law change has been overstated and that filing an Arizona bankruptcy is still an option for solving their financial troubles.

Alaska bankruptcy filings start to rise in 2006. Even though the laws passed in October 2005 continue to impact the number of bankruptcy cases in all the states, lawyers are beginning to see more Alaska bankruptcy filings in their caseload.

This 8.7 percent increase in the twelve-month period ending June 2006 shows that the new laws have not permanently impacted the number of Alaska bankruptcy cases. Anyone who is having financial challenges can still consider bankruptcy as an option.

The number of people filing for a California bankruptcy is nearly 8 percent of the total number of bankruptcies filed in the entire United States. Californians have learned that the new bankruptcy laws enacted in the fall of 2005 do not necessarily limit their ability to file a California bankruptcy.

The statistics show that California bankruptcy cases will likely continue to increase as more and more consumers learn about the benefits of bankruptcy and discover that they're still eligible to file.

The idea that discharged debts are no longer subject to collection action may seem obvious to most people. Unfortunately, the concept appears somewhat less clear to some creditors and third party collection agencies or debt purchasing companies.

In most cases, a creditor who attempts to collect a debt that has been discharged in bankruptcy is in contempt of court. If it's a third-party debt collection agency, the agency may also be in violation of provisions of the Fair Debt Collection Practices Act.

Recently, the Federal Trade Commission has reported action against debt purchasing companies that buy up invalid debts--debts that are too old to be collected legally, or have been discharged in bankruptcy--and then hound debtors with empty threats until those debtors feel they have no choice but to pay debts that are no longer owed.

If you're contacted about a debt that was discharged in bankruptcy, take action. The bankruptcy court may re-open your case to sanction the creditor, and if it's a third-party company (someone other than your original creditor), complain to the Federal Trade Commission.

When two or more people are jointly obligated for a debt, and one of those debtors files for Chapter 7 bankruptcy protection, only that debtor's obligation is affected.

This comes into play most often when a married person files for Chapter 7 bankruptcy but his or her spouse does not. If the couple has joint debts, even if the person filing for bankruptcy protection was the primary account holder, the other person is still obligated for the debt.

This is true whether or not the joint debtors are married, and applies even if the co-debtor was only a co-signer on the account. Debtors with outstanding joint debts should factor this in when considering Chapter 7 bankruptcy - if one spouse files without the other and there are significant joint debts, the practical impact of discharging those debts as to one spouse may be limited.

By now, most consumers know that the changes in the U.S. Bankruptcy Code in October of 2005 have created additional hurdles for people who want to file for bankruptcy protection. We've previously explained how those obstacles make a little additional work, but actually prevent very few people from filing for bankruptcy protection.

The most significant concern regarding the pre-filing Credit Counseling requirement is that a bankruptcy case can and usually will be dismissed outright if the certificate isn't filed in a timely manner. That means losing the protection of the automatic stay, which might allow time for creditors to foreclose on property or repossess vehicles.

However, the pre-filing requirement doesn't have to be a difficult hurdle. Start Fresh Today offers an interactive online Credit Counseling briefing that is easy to understand and complete. Start Fresh Today also offers the Debtor Education course required prior to discharge in a bankruptcy case. That course is also available in an affordable, interactive, online format.

Since the law change last fall, many consumers have been under the mistaken impression that they're no longer eligible for bankruptcy protection. Although requirements like the Credit Counseling and Debtor Education certifications and the Chapter 7 means test make preparing for and filing bankruptcy a bit more work, they actually preclude very few people from filing.

You may have heard people mention that they'd entered into a Chapter 13 plan and "paid it off" early. Getting out of bankruptcy early sounds great, but it may require more than simply paying the amount included in your original plan over a shorter period of time.

That's because many Chapter 13 plans are not "100 percent plans". That means that in many Chapter 13 cases, unsecured creditors settle for a percentage of what is actually owed to them. If a debtor in a 100 percent plan "pays off" the bankruptcy early, then those creditors typically receive 100 percent payment and there is generally no reason the case can't be finalized early.

In many cases, however, the unsecured creditors have been promised only a portion of what was owed to them. If a debtor has entered into a plan that provides for payment of only a portion of outstanding debts, the debtor generally can't pay just that portion early and accelerate the case--instead, 100 percent payment would usually be required to terminate the case prematurely.

One factor to consider when determining whether to pursue a Chapter 7 bankruptcy or Chapter 13 bankruptcy petition is the impact of each on co-signers. If someone has co-signed a loan for you, that person has guaranteed payment of the loan.

If the account is delinquent, your late or missed payments may already have harmed your co-signers credit. And if you discharge the loan in a Chapter 7 bankruptcy, the co-signer remains responsible for the full amount of the debt.

On the other hand, if you file for bankruptcy protection under Chapter 13, your co-signer will be protected so long as you make timely payments under your Chapter 13 plan.

There are other factors, of course, and not all debtors are eligible for both types of bankruptcy and so may have the decision made for them--but if you are considering bankruptcy and have loans co-signed by friends or family, you should be aware of the difference in the way they'll be impacted by Chapter 7 bankruptcy versus Chapter 13.

One year ago, it cost a consumer $209 plus attorney fees to file for Chapter 7 bankruptcy protection.

When the new bankruptcy law took effect in October of 2005, that cost jumped to an average of $354: Fees were increased by $45, and the credit counseling and debtor education course requirements were added, at an average cost of $50 each.

An "emergency supplemental spending bill" signed into law in May, 2005 increased those fees again, effective October, 17 2005--so the $354 price tag turned into $374 before it ever even took effect.

The Deficit Reduction Act further increased the fees, effective April 9, 2006. The total cost currently stands at an average of $399. The statutory filing fee, which makes up the bulk of the expense, was $155 one year ago and has increased to $200, then $220, and now stand at $245.

There is a movement afoot, however, to increase that filing fee to $300, which would bring the total average cost to $439 plus attorney fees.