FAQS

Yes. Once you retain our law firm, a contract will be signed allowing us to accept your creditor calls. Furthermore, as soon as your case is filed, an automatic stay will go into effect that will stop all creditor activity, including calling you.

Yes. The automatic stay will stop a garnishment in most instances. All lawsuits filed against you must stop once the bankruptcy is filed.

Generally speaking, yes, but there are exceptions. If you qualify, filing Chapter 13 allows you to reorganize your debt and repay your mortgage arrears over time, thereby stopping the foreclosure. Chapter 7 may temporarily stop foreclosure, but it will not protect you long term from foreclosure if you do not immediately become current on your mortgage.

Yes. The automatic stay will stop creditors from repossessing collateral. If you qualify, the debt can be reorganized in a Chapter 13. Similar to foreclosures, Chapter 7 may temporarily stop repossession but will not offer long term protection.

Yes. It is important that you list all of your assets - the Bankruptcy Code requires that you do so.You must disclose your assets to your attorney so he or she may properly advise you. Some things that may not seem like an asset to you (such as a potential claim you may have against an individual or an entity) may be, which is why it is important to carefully answer all of your attorney's questions. It is a crime not to disclose all of your assets. By failing to disclose assets, you risk losing your discharge or facing criminal prosecution.

When you file for bankruptcy protection under Chapter 7, a bankruptcy trustee is appointed to administer your non-exempt assets. If you have non-exempt assets, the trustee can sell them and pay your creditors. However, this does not mean that you cannot keep assets. Under the Bankruptcy Code, certain assets are exempt, meaning that you may keep them. It is best to consult an attorney to learn your rights, but briefly: a certain of amount equity in your home, vehicles, other personal assets and retirement plans are often exempt. The majority of people who file for Chapter 7 are permitted to keep all of their assets.

No. You must include all of your debts. However, some debts may be reaffirmed if you and the creditor agree.

Debts you failed to list when you filed bankruptcy, although there are exceptions to the rule.
Debts for child support and alimony.
Debts for personal injury or death caused by driving while intoxicated (drugs or alcohol).
Debts for student loans - few exceptions may apply.
Fines and penalties imposed for violating the law.
Property taxes against property you choose to keep.
Income taxes for the last three (3) years (generally). It is highly recommended that you review your particular circumstances with an experienced attorney.
Mortgage payments in arrears (if you choose to keep your home)
Vehicle loans in arrears (if you choose to keep your vehicle).

Yes. You can be held responsible for any debt for which you signed an agreement stating that you would pay in the event that someone else failed to make the payments (co-signed).

Secured debt is debt that is secured by collateral (e.g. real estate or a car) which can be taken if you do not pay the underlying debt. Unsecured debt is held by creditors that have no collateral securing the debt (e.g. credit cards, personal loans, medical bills).

It is possible for only one spouse to file an individual bankruptcy without the other spouse. However, you need to discuss this carefully with your attorney. The spouse that doesn't file may end up being responsible for some of the debts.

In most cases you do not have to go to court. However, in both Chapter 7 and Chapter 13 you are required to attend a meeting of creditors that is conducted by a bankruptcy trustee. Your attorney will attend the meeting of creditors with you and will make sure all of your paperwork is in order.

A discharge of a debt in bankruptcy means that the debt has been wiped out (eliminated).

A dismissal in bankruptcy means that you did not honor your bankruptcy agreement and, as a result, you no longer have bankruptcy protection from your creditors and you will be liable for all of your debts. This allows your creditors to start the process of collection, foreclosure and repossession all over again.

In a chapter 7, a discharge is usually entered within four (4) months of the bankruptcy filing. In a Chapter 13, your discharge will be entered once you have completed the payments under the Chapter 13 plan, typically a three (3) to five (5) year period.

Situations occur in life that may cause your debts to become overwhelming. Lenders realize that people learn from their experiences. Just because your debts were out of control at one time does not mean that your future bills will go unpaid. Issuers of credit (banks and credit card companies) are free to consider your bankruptcy when deciding whether to extend credit. Bankruptcy filings are generally listed on your credit report for up to ten (10) years. Some companies may extend credit to you right away, usually at higher interest rates, while others may wait until after two (2) years have passed. There may be some businesses that will choose to wait until after the bankruptcy is no longer on your credit report.