Frequently Asked Questions
Here are some common concerns and questions that many have regarding bankruptcy
What is a chapter 7 bankruptcy?
A chapter 7 filing is liquidation that allows individuals to discharge certain unsecured debt and start fresh. It is may be the best option for individuals who are overwhelmed with credit card debt. Most people who file retain their assets. Not everyone is eligible to file for chapter 7 and that is why it is important to seek the proper legal advice of an experienced bankruptcy attorney. A chapter 7 bankruptcy may give you the fresh start you need.
What is a chapter 13 bankruptcy filing?
A chapter 13 filing is available for individuals who are receiving a regular, steady income. It allows you to restructure you debt. A plan is proposed to pay back your creditors. This proceeding allows you to retain your assets. This is a common form of bankruptcy relief for someone who is facing a foreclosure sale. Let us guide you to the path that may be able to help you save your home.
Will filing a petition stop my creditors from harassing me?
Yes, upon the filing of a bankruptcy petition most collection actions are stopped including wage garnishments, repossessions and foreclosure sales. Any action taken by a creditor in violation of the automatic stay will be void and if the creditor willful violates the automatic stay, sanctions may be imposed.
Will a filing for bankruptcy wipe out my debts?
Filing for bankruptcy gets rid of most of your debts such as credit card debts. However, a debtor has a duty to file certain documents, cooperate with the bankruptcy trustee and perform other duties during the filing or the debtor may risk a denial of the discharge. This is why it is important to hire experienced counsel that will guide you through the process and help you achieve a discharge of your debts.
Can anyone file for a chapter 7 petition?
Not every person is eligible to file a chapter 7 petition. A person's eligibility is determined by what is called the means test. If you do not qualify for a chapter 7 filing, you may qualify for a chapter 13 filing. Eligibility may also be determined by whether you filed a previous petition. It is important to contact an attorney to help you determine whether bankruptcy is an option for you.
What can a bankruptcy filing do to help me?
A bankruptcy filing may help save your home or car and can wipe out most of your unsecured debt. It will give you a fresh start and a new beginning.
