FAQs Bankruptcy

Q: How does bankruptcy work?

A: If a debtor owes more money than they are able to pay back, a bankruptcy may allow them to make arrangements with their creditors to pay just a portion of what they owe, or eliminate their debts altogether,and leave them in a stronger financial position.

Q: After I go bankrupt, will the harassing phone calls and letters stop?

A: When your case is fileds, an automatic "stay" should immediately take effect, stopping creditors cold in their tracks and ending the harassment during your case.

Q: Will going bankrupt stop any garnishments of my paycheck from lawsuits for unsecured debts or credit cards?

A: Once you have the automatic stay in place, garnishments should end immediately during your case.

Q: How can I tell which type of bankruptcy should I file?

A: Depending on the amount of debt that you owe and what your assets are, your bankruptcy attorney will suggest the best type of bankruptcy for you.

Q: Who is allowed to file for bankruptcy?

A: With only a few exceptions, just about any person or business that owes money to creditors is generally allowed to file for bankruptcy.

Q: Will my bankruptcy remain on my credit report for a very long time?

A: A bankruptcy usually remains on your credit record for ten years. However, many banks and creditors may be willing to deal with you almost immediately after your bankruptcy is discharged.

Q: What is the difference between "secured" and "unsecured" credit?

A: A secured debt, like a vacation home or a boat, can allow a creditor to make a claim on that property if it is not paid for. An unsecured debt, like credit card purchases, does not allow the creditor to have any claim on the debtor's assets.

Q: If I file for bankruptcy and then discover additional debts, are those debt also covered?

A: Your bankruptcy attorney may be able to amend your case to add on additional debts.

Q: I am married. Do we both have to file for bankruptcy at the same time?

A: This varies on a case-to-case basis. You should discuss this carefully with your bankruptcy attorney. Your spouse may be responsible for some of the debts.

Q: Will I be responsible for my former spouse's debts if I get divorced?

A: You might be. Be very careful and discuss this with your bankruptcy attorney

Q: I co-signed for a debt; can I be held responsible for that?

A: Yes. Again, be careful and discuss this with your attorney.

Q: Will all of my debts be discharged?

A: Most debts can be discharged, but not all. Some debts like government loans and student loans, and some others cannot be discharged.

Q: Are my social security payments in danger if I file for bankruptcy?

A: No, your social security payments should be safe.

Q: Will I lose any of my personal property if I file for bankruptcy?

A: Both state and federal exemptions are available that will allow you to retain a certain amount of personal property. Many people have to give nothing up. Your attorney will know what laws apply to you specifically in your state.

Q: Can I choose which debts to put in my bankruptcy filing?

A: No. In fairness to your creditors, you must include all of your debts in your bankruptcy filing.

Q: In order to file for bankruptcy, will I have to appear in a court before a judge?

A: If one of your creditors contests the bankruptcy, it will generally require a hearing where a judge presides. This is more common in a Chapter 13 bankruptcy than in a Chapter 7 bankruptcy.

Q: When will my bankruptcy be discharged?

A: Usually a Chapter 7 bankruptcy discharge is received just 60 days after the 341 meeting!

There is a bankruptcy attorney in your area waiting to contact you!.