Bankruptcy

How Long Will I Be In Bankruptcy?

Can you stop wage garnishment?

Can my co-signer be protected?

Can I sell or refinance my home?

What about back spousal or child support?

How soon will you stop calls from my creditors?

Will I have to go to court?

When can I purchase a new home?

How does bankruptcy affect my credit?

Will my landlord be notified?

What kinds of debts does Bankruptcy eliminate?

Why try to pay creditors back in Chapter 13 Bankruptcy, why not just file Chapter 7 Bankruptcy?

Can you stop auto repossession?

Do I have to list all my creditors?

Can you stop my home foreclosure?

Can you remove a lien on real estate?

What about back taxes?

Will my bank accounts be affected?

Can I get out of a contract?

Can Bankruptcy help with delinquent Student Loans?

Does Chapter 7 Bankruptcy or Chapter 13 Bankruptcy stop lawsuits to collect debts?

Will my employer be notified?

Will I lose any property, assets or belongings?

A Chapter 7 Bankruptcy usually takes about 4-5 months, although your creditors cannot attempt to collect on the debts once your case is filed. A Chapter 13 Bankrupcy case takes from 3 to 5 years to complete.

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Yes. Any wage garnishment must stop when we file your case.

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All consumer co-signers can be protected under a Chapter 13 Bankruptcy case. However, co-signers are still liable and creditors can attempt to collect against them in a Chapter 7 Bankruptcy case. 

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In either a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, you must obtain court permission to sell or refinance your home.  In a  Chapter 7 you must have permission to sell your house for 180 days after your filing date.  After a discharge in a Chapter 13, you may qualify for a new home loan based on your reestablished credit. 

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In a Chapter 13 Bankruptcy case you pay child and spousal support arrears in full, without further interest, in your payment plan. In a Chapter 7 case, child and spousal support are not dischargeable. Although you can postpone the payments on arrears while you are in Bankruptcy, you eventually will have to pay them off. 

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Once your Bankruptcy is filed with the Bankruptcy Court, the law requires your creditors deal with us and leave you alone. 

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Yes, but it is nothing to worry about because an attorney will be present to represent you. Only one hearing is required approximately 30 to 35 days after filing. This is normally a very short hearing called a "341 Hearing" or "Meeting of the Creditors."  While the majority of the time no creditors appear, it is possible that one or more of your creditors may be present to ask questions. 

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After discharge, you may assume a sellers loan or, you may possibly qualify for a new home loan depending on your income and your re-established credit record.  Additionally, there are many mortgage lenders who specialize in extending credit to those people who file Bankruptcy. 

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 A Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy remains on your credit report for up to 10 years.  However, you can immediately begin re-establishing your credit after your case is filed.  Due to the fact that you are wiping out your debts and cannot file again for 4 to 8 years, credit companies want to be first in line to extend credit to you again.  By not filing Bankruptcy, your credit report may show negative information for 7 years from the time you become current.  By filing, negative reporting stops immediately.  This allows you to begin re-establishing credit faster by keeping house, auto or other payments current.

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 Yes, if you have a lease other than month to month.

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A Chapter 7 Bankruptcy will eliminate most unsecured debts (credit cards, loans) but not secured debts such as your car or home.  To keep your car and/or home, payments must be kept current.   In a Chapter 13 Bankruptcy case, you pay part of your debts, depending on how much disposable income you have each month. 

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If your income is above a certain level,  based on the size of your household, the law requires payment to your creditors in a Chapter 13 repayment plan. 

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Absolutely.  Once your case is filed with the Bamkruptcy Court, no one can repossess your automobile provided you maintain your payments and current automobile insurance.

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Yes.  In a Chapter 13 Bankruptcy case, we can stop forecloosure by proposing a plan whereby you come current over time while continuing to make the regular monthly mortgage payment.  In a Chapter 7 Bankruptcy case, if you are not current on your payments, the Bankruptcy will postpone the foreclosure until your case is discharged or until your creditor/mortgage holder files a motion for, and is granted, "relief from stay." 

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f the lien was not incurred to purchase the property, was not consensual, and impairs your ownership interest in property (an exemption), it may be possible to have the lien removed by using lien avoidance techniques. 

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In a Chapter 13 Bankruptcy you pay back certain taxes without further interest or penalties over the course of your payment plan.  In a Chapter 7 Bankruptcy secured taxes, such as property taxes, cannot be discharged.  However, unsecured, personal income taxes may be discharged if the taxes are 3 years old, you filed timely, you have not been assessed the taxes in the prior 240 days and you have not entered into a written "offer in compromise" to settle the debt. 

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Some banks will freeze the money in your accounts when you file a Capter 7 bankruptcy.  Wachovia and Wells Fargo do this as well as some Credit Unions.  In addition, if you owe your bank or credit union money (your bank or credit union is an unsecured creditor), close the account and move to a bank where you owe nothing.  Otherwise, at time of filing, your bank could offset or freeze your account. 

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 Yes.  In both a Chapter 7 Bankrupcty and Chapter 13 Bankruptcy case you can cancel unwanted contracts as long as you discontinue the service and/or return the merchandise.  Examples of this could include an agreement with an Exercise/Gym facility you no longer wish to attend, a lease/loan on a returned or unwanted automobile or a residential lease that you want to end.

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Student loans are generally not dischargeable (there are some rare instances where an extreme hardship may render student loans dischargeable). 

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Yes, when we file your case with the Bankruptcy Court.

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Not in a Chapter 7 Bankruptcy unless your employer is also a creditor.   In a Chapter 13 Bankruptcy case, your payments will be paid by payroll deduction.  Also, if you are being garnished by a Creditor, then your payroll department would have to be notified of your filing in order to stop the wage garnishment.

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State laws protect what you own.  These are called "exemptions".  Most, if not all, of your assets (including automobiles and certain amounts of equity in your home) are "exempt" allowing over 99% of our clients to keep everything and lose nothing. In a typical Chapter 7 Bankruptcy, filed through our office, you will lose nothing.  Our attorneys will advise you if you have belongings that cannot be protected.  In Chapter 13 you keep all the assets you choose because your debts are paid off or wiped out.   

If you are ready to be debt free, call Mary at (757)351-6223 or Ms. Harrell at (757)340-4528.  They will schedule a no cost, no obligation appointment so we can show you how to become debt free.

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