FAQ's

Under the Federal Bankruptcy Laws , Individuals are able to keep significant assets. Most people don't have to worry about losing their home, car or household goods, and you are allowed to keep more equity in your assets. If you have questions about specific assets and whether or not you can keep them, contact the office.

All debts are included in bankruptcy and must be disclosed to your attorney and the court. This includes taxes, student loans, marital debt, medical bills, credit cards, home mortgages and car payments. However, even thought all debts are included in bankruptcy, not all debts are dischargeable.

Ultimately, the goal of bankruptcy is to have your debts discharged. A discharge is an injunction stating that no one can ever ask you to pay the debt or collect it from you. Most debts can be discharged in bankruptcy. However, certain debts are exempted from discharge due to public policy reasons including those that arise from certain violations of the law. If you have questions about whether your debt can be discharged, contact the office.

There are several different types of bankruptcies but most people fall into one of two options. These are known as chapter 7 and chapter 13. Under chapter 7 (also called a “liquidation bankruptcy”) you are looking to discharge all of your debts. In a chapter 13 (also called a “wage earner” bankruptcy) you intend to discharge the remainder of your debt after you have paid back a portion of the debt and have sufficient income to achieve this goal. Your specific goals and situation will determine under which chapter you file. Contact me to learn more about the differences between chapter 7 and chapter 13 bankruptcy.

The cost of a bankruptcy is determined by the complexity of the situation and the type of bankruptcy. The bankruptcy court supervises the attorney fees, and all fees must be approved by the court. In chapter 13 bankruptcy, when you are repaying bills, you must pay bills to trustees appointed by the court. Trustees make payments to creditors on a regular basis. This money is also used to pay the attorney fees.

After you file for bankruptcy, the court issues what is commonly referred to as an automatic stay? An automatic stay is an injunction that applies to creditors and orders them to stop taking action to collect debt, including telephone calls, letters, wage garnishment and repossession of cars. It also prevents utilities from being disconnected.