Q: Why should I spend money and hire an attorney to file for bankruptcy?
A: It is all too common for self-filed bankruptcy cases to fail and therefore none of the debt is discharged.  The Bankruptcy code is complex and carries with it a very specific legal process with requirements and deadlines the untrained person is not likely to be aware of.  How much is it worth for the peace of mind you will have knowing that a team of knowledgeable individuals, well versed in the process, are focused on the success of your case?

Q: If I file for bankruptcy will the trustee repossess all my belongings?
A: There are a number of “exemptions” within bankruptcy that can be used to protect the value of most, if not all of your possessions. An experienced Bankruptcy Attorney should be able to advise if your assets are likely to exceed the existing exemptions.

Q: Will filing for bankruptcy prevent me from ever having a good credit rating?
A: Bankruptcy relief is not supposed to permanently damage your financial position and be an extended punishment for you. While the interest rates you are offered on financing immediately following bankruptcy are likely to be higher in the near term, there are lenders who will offer you credit allowing you to begin rebuilding your credit score.  Generally people who have filed for bankruptcy begin to get credit card offers soon after their case is completed. 

Q: If I file for bankruptcy will my friends and family be notified that I have done so?
A: While bankruptcies are part of the public record, notifications are only sent to interested parties within the bankruptcy such as Creditors and Co-Debtors.

Q: Can bankruptcy stop the foreclosure of my home?
A: Yes.    A Chapter 7, mayonly allow you to temporarily postpone the foreclosure But a Chapter 13 with its  3-5 year repayment plan may allow you to truly stop the foreclosure process.  Once you have met the obligations of the Chapter 13 bankruptcy you will be current on your mortgage and the foreclosure will stop.

Q: Can bankruptcy discharge State or Federal tax debt?
A: The general rule is that tax debts that are 3 years old  or older can be discharged.   But if the tax obligation is less than 3 years old, the debt will need to be repayed.

Q: Can bankruptcy stop a wage garnishment?
Wage garnishments can be stopped through both Chapter 7 and Chapter 13 bankruptcy.

Q: Can bankruptcy stop a collection lawsuit?
Pending collection lawsuits can be stopped through both Chapter 7 and Chapter 13 bankruptcy.

Q: I’m struggling under a second mortgage, can bankruptcy help with that?
If the value of your home is upside down, we can often discharge a 2nd mortgage debt and eliminate the lien from the property.  To do this, a Chapter 13 or Chapter 11 bankruptcy is required.

Q: A lien has been placed on my property, can bankruptcy help with this?
Most liens including 2nd mortgage liens, HOA liens, Collection Liens etc. can be removed through bankruptcy.

Q: Is it possible that I make too much income to file for bankruptcy?
In Ch 7 bankruptcy the income of the debtor cannot exceed the threshold set for their household.  If you surpass these income limits, you will not be allowed to file for Ch 7 but will need to file Chapter 13 instead.

Q: Is there such a thing as having too little debt to file for bankruptcy?
A: A common rule of thumb is that your debt should be more than $15,000, but this question really will need to be answered by you.    Because filing does come at a certain cost, both financially and to your credit score You will need to consider this when deciding if bankruptcy relief is right for you.

Q: Should I burn through any savings and retirement I might have before considering bankruptcy?
A: Pension and retirement accounts can be protected within bankruptcy via their own set of exemptions. Ask an honest bankruptcy attorney for additional information.

Q: What is the main difference between a Chapter 7 and a Chapter 13 bankruptcy?
A: Chapter 7 bankruptcy is also known as a “basic liquidation” bankruptcy. In Chapter 7, a Bankruptcy Trustee will proceed to liquidate any assets not exempted to repay what creditors can with the money available and then discharge any remaining unsecured debts. The limits of Chapter 7 are that it cannot stop a foreclosure (it can only postpone it), help with the repayment of tax debts or allow for the repayment of arrears on a secured debt such as a vehicle loan.  A Chapter 7 can however discharge all or the majority of your unsecured debts like credit cards and medical fees. It can also stop pending collection lawsuits. For more complete information on Chapter 7 Bankruptcy follow this link.

Because a Chapter 13 bankruptcy includes a 3 or 5 year repayment plan to settle certain secured and non-dischargeable debts, like past due amounts on a mortgage or outstanding taxes.  As long as you continue to meet the obligations of the repayment plan, a Chapter 13 bankruptcy CAN stop a foreclosure as well as relieve garnishments andremove liens,  As in Chapter 7, it will also discharge all or part of your unsecured debt.  For more complete information please see our full description of Chapter 13 Bankruptcy here.

Q: I have a car loan I’d like to continue, is this possible in bankruptcy?
A: Yes, as long as you are current on your payments or have a way to become current , and remain current in all your future payments you should be able to complete this loan.

Q: I am pursuing a Loan Modification, would bankruptcy disqualify me from receiving one?
It is the bank and the owners of your loan that will ultimately determine if you are approved for the Loan Modification.  Most banks, as a general rule, will continue to analyze your modification request even after you file for bankruptcy.

Q: I am on a fixed income, can I qualify for bankruptcy?
By in large people on fixed incomes qualify for bankruptcy protection. 

Q: A Trustee Sale date has been set for my home, can bankruptcy stop this sale?
Yes, but you must be able to fulfill a realistic plan for the restructure of your repayments allowing you to be able to delay the sale. 

Q: Can bankruptcy discharge medical debts?
A: Yes, either a Ch 13 or a Ch 7 bankruptcy can discharge debts related to medical expenses.

Q: I’m married but my spouse doesn’t want to file for bankruptcy, can I file individually?
A: Yes but the most important thing you need to know is whether the debts you need to discharge or manage via bankruptcy are yours alone.  If this is the case, while your spouse will be asked to provide basic information with reference to their income as part of your household, they will remain unaffected by the bankruptcy.