Bankruptcy

1. What is the difference between chapter 7 and chapter 13 bankruptcy?

Answer: Chapter 7 is a liquidation of all of your unsecured debt. You do not have to pay back any of your unsecured debt and get you get a fresh start. Chapter 13 bankruptcy is a reorganization of your debts. This is a repayment plan for 3 to 5 years where you are paying a percentage of your unsecured debt back.

2. Do I qualify for bankruptcy?

Answer: Since the bankruptcy law changed in 2005, the courts now look at your income to determine if you qualify. If you are above the median income, a more complex formula can be used and you may still qualify. For more information, please contact our office.

3. Will I lose my house if I file for bankruptcy?

Answer: In most cases no, you will not. As long as you don't have above the allotted amount of equity and can afford to keep it.

4. Are there things I can't discharge in a bankruptcy?

Answer: Yes. You cannot discharge back taxes, student loans, child support, or debts obtained through fraud.

5. Does my spouse have to file bankruptcy with me?

Answer: No. you can choose to file jointly or individually, depending on your specific circumstances. Sometimes all of the debt is in one spouse's name, in this instance it wouldn't make sense for both to file.

6. When do my creditors stop calling me?

Answer: Once you retain our firm to handle your bankruptcy, you will advise your creditors to contact us and all calls to you should stop.

7. When do garnishments stop?

Answer: Garnishments will only stop when your case is filed with the Bankruptcy Court and we have a case number. In some instances, we can recover monies for you that were taken within 90 days of filing.