Bankruptcy FAQs

Bankruptcy protection can help to stop harassing telephone calls and letters, wage garnishments and lawsuits. Bankruptcy can also stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments as well as prevent repossession of a car or other property. Most importantly bankruptcy makes it possible to discharge an individual from the legal obligation to pay most or all debts including credit cards, medical bills, signature loans and judgements.

If you are not seeing your debts go down, bankruptcy can allow you to get out from under those debts and make a fresh start. If you have a spouse, child or another loved one relying on you for support, it is essential to have enough money to cover emergencies expenses and insurance without having the burden of debt. Bankruptcy lets you prioritize what's important. Also, if you are in danger of losing your home or car bankruptcy can help avoid repossession or foreclosure.

Bankruptcy is a legal proceeding in which a person can get a fresh financial start. There is no requirement that you have a certain amount of debt.

No. A married person is allowed to file a bankruptcy case on their own.

You may benefit from either Chapter 7 or Chapter 13 bankruptcy, depending on your income and circumstances.

Yes; however your obligation to appear in court will be minimal. You will be required to attend a hearing called a First Meeting of Creditors. If you retain our services, we will attend this meeting with you. This meeting is presided over by a bankruptcy trustee not a judge. The trustee will ask you questions about your bankruptcy papers. This hearing typically does not last long. After this initial meeting, people who file for protection usually do not need to return to court.

Yes; the filing of a bankruptcy will stop debt collection against you. Both auto repossession and a foreclosure lawsuit are attempts to collect debts from you and are thus stopped by the filing of a bankruptcy case.

Ironically bankruptcy will often improve your credit because it relieves all your debts in bankruptcy. Clients often receive credit cards within months of filing bankruptcy, and are usually able to get a home mortgage within a year or so.

Most Chapter 13 attorney fees are in the plan of repayment. We are paid from the monies which you pay to the trustee. The trustee pays us along with all of the other creditors. In Chapter 7 cases, a payment arrangement is available for the payment of our legal fees and the court costs.

Yes. As soon as you file a bankruptcy protection called the "automatic stay" goes into effect barring creditors from pursuing any additional collection efforts on your debts. This gives you a chance to breathe and begin restructuring and/or elimination of eligible debts.