WILL FILING A BANKRUPTCY IMMEDIATELY STOP MY CREDITORS FROM HARASSING ME?
 
Yes, they will! By law, all actions against a debtor must cease once the documents are filed. Creditors cannot initiate or continue any lawsuits, wage garnishees, or even telephone calls demanding payments.   Secured creditors such as banks holding, for example, a lien on a car, will get the stay lifted if you cannot make payments.

WHAT IS CHAPTER 7 BANKRUPTCY?

Chapter 7 bankruptcy, sometimes called a straight bankruptcy is a liquidation proceeding. The debtor turns over all non-exempt property to the bankruptcy trustee who then converts it to cash for distribution to the creditors. The debtor receives a discharge of all dischargeable debts usually within four months. In the vast majority of cases the debtor has no assets that he would lose so Chapter 7 will give that person a relatively quick "fresh start".
One of the main purposes of Bankruptcy Law is to give a person, who is hopelessly burdened with debt, a fresh start by wiping out his or her debts.

WHAT IS CHAPTER 13 BANKRUPTCY?

Chapter 13 Bankruptcy is also known as a reorganization bankruptcy. Chapter13 bankruptcy is filed by individuals who want to pay off their debts over a period of three to five years. This type of bankruptcy appeals to individuals who have non-exempt property that they want to keep. It is also only an option for individuals who have predictable income and whose income is sufficient to pay their reasonable expenses with some amount left over to pay off their debts. More information on Chapter 13.

HOW DIFFICULT IS IT TO FILE CHAPTER 7 UNDER THE NEW LAWS?

There has been much doom and gloom written about the bankruptcy means test under the new laws and how much more difficult it's going to be to file Chapter 7. It's true that there are more hoops to jump through under the new laws and it's true that the bankruptcy means test will result in some people having to file chapter 13 instead of Chapter 7. However, for the vast majority of filers Chapter 7 is still available with very little extra effort!  For more information, please follw this link.

WILL MY SPOUSE BE AFFECTED IF I FILE?

Your wife or husband will not be affected by your bankruptcy if they are not responsible (did not sign an agreement or contract) for any of your debt. If they have a supplemental credit card they are probably responsible for that debt. However, In community property states, either spouse can contract for a debt without the other spouse's signature on anything, and still obligate the marital community. There are a few exceptions to that rule, such as the purchase or sale of real estate; those few exceptions do require both spouse's signatures on contracts. But the day to day debts, such as credit cards, do NOT require both spouses to have signed.

Community property states are: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

WHO WILL KNOW I FILED BANKRUPTCY?

Bankruptcies are public record and do show up in credit reports. Prespective future creditors, employers, and anyone checking your credit will know if you filed. Bankruptcy usually stays in your credit bureau file for 10 years. However, especially in today's economic climate, most creditors have guidelines for extention of credit based on past bankruptcies. Other than that, only people you tell, or those seeking information about you will ever know.

WHAT THINGS DON'T I KEEP?

In a bankruptcy, assets in excess of your allowed personal exemption, or non exempt assets such as, real estate, automobiles and boats will be liquidated by the trustee. 

I WAS BANKRUPT BEFORE, WHEN CAN I FILE AGAIN?

A person can file Chapter 7 again if it has been more than 8 years since he or she filed the previous Chapter 7 bankruptcy.

I'M BEHIND ON MY PAYMENTS. CAN I KEEP MY HOUSE?

Maybe.  Filing in either Chapter 7 or 13 may buy you some time to come up with a plan to save the house. In Chapter 7 however the time may be very, very short, and frankly there is little that can be done in a 7 to save secured property (such as a mortgaged home, or a financed vehicle) if the payments are overdue.

Chapter 13 on the other hand may allow you an extended period of time (three years but sometimes up to five years) to repay the overdue balance on your mortgage through the Chapter 13 repayment plan.

How Do I Begin?

Simply call us at the telephone number above or complete the short questionaire below. Either way we will be happy to answer all of your questions regarding the best course of action based on your financial conditions.