Frequently Asked Questions

Q. How do I know its time to file for bankruptcy?
A. Are your credit cards not going down because you are only making the minimum payments? Can you no longer pay the bills of the house because you are suffering with a lower income? Have the Creditors been calling you demanding their money? Have you been sued by the Creditor? Does a Creditor have a Judgment against you already, and is trying to figure out where you bank so they can levy on you? Each of these are reasons to say, it is time to file and consult with an attorney.

Q. What are the types of bankruptcy? They are several types of bankruptcy.
A. The most popular and common one for individuals (or married persons) is Chapter 7 and Chapter 13. There is also Chapter 11 if you have secured debt of over one point 3 million. To be a Chapter 7 Debtor you must be under the Median Income for your household size, otherwise you will probably be a Chapter 13. (Put in the Chart I gave you)

Q. What is the difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy?
A. Chapter 7 bankruptcy is the shortest and most powerful type of bankruptcy. IT lets you wipe all debt except for tax debt, Alimony and Child Support. You have to qualify for a Chapter 7 based on your Gross Income of the household. A Chapter 13 Bankruptcy is a re-payment plan where you use your "disposeable income" to re-pay a percentage of your debts. Chapter 13 is also used when a Debtor or Debtors own a house that has more than 25,000 in equity.

Q. Do I need a bankruptcy attorney to file for bankruptcy?
A. Technically, no, you do not need an attorney. IF you are going to file "pro se" be careful and watch out for all the different forms, and remember to do the credit counseling. Chances are, if you are looking for help as to understanding the "ins and outs" of bankruptcy, you should at least consult with a lawyer familiar with bankruptcy law

Q. If I file for bankruptcy, does it erase all of my debts?
A. It depends on what Chapter of bankruptcy you file. A Chapter 7 will not wipe out Domestic Support Obligations, such as Alimony or Child Support, nor will it wipe out taxes. A Chapter 13 Plan, where you are repaying debts, may wipe out some of the taxes, if you complete the Plan and the taxes are deemed General Unsecured in terms of priority Payments.

Q. What types of debts are included when I file for bankruptcy?
A. You are required to list ALL of your debts. You may not pick and choose what you put in and what you leave out. This means ALL Credit Card Debt, ALL medical debt, ALL personal loan debt, ALL Car and house debt. ALL means ALL

Q. Who can see if I have filed for bankruptcy?
A. Technically anyone who has access to a computer can see if you filed for bankruptcy. Bankruptcy is a "public" record, but the person searching must have a PACER Account and be able to access the system. Also, it is listed on your Credit Report and a Title Report where they run your name and or social security number would show the same.

Q. Is filing for bankruptcy a way to stop foreclosure or repossession?
A. Yes, Bankruptcy can stop a foreclosure and repossession, but you better have a plan of how you are going to re-pay on the foreclosure (maybe a loan modification) or have all the funds for a repossession.

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