WHAT IS CHAPTER 7 BANKRUPTCY?

Chapter 7 bankruptcy, sometimes call 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. 

WILL MY CREDITORS STOP 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.

WHO WILL KNOW?

Bankruptcy filings are public records. However, under normal circumstances, no one will know you went bankrupt. The Credit Bureaus will record your bankruptcy and it will remain on your credit record for 10 years.

WILL I EVER GET CREDIT AGAIN?

Yes! A number of banks now offer "secured" credit cards where a debtor puts up a certain amount of money (as little as $200) in an account at the bank to guarantee payment. Usually the credit limit is equal to the security given and is increased as the debtor proves his or her ability to pay the debt. The fact you filed bankruptcy stays on your credit report for 10 years. It becomes less significant the further in the past the bankruptcy is. The truth is, that you are probably a better credit risk after bankruptcy than before.

CAN MY BOSS FIRE ME FOR FILING BANKRUPTCY?

No. U.S.C. Sec. 525, prohibits any employer from discriminating against you because you filed bankruptcy.

WILL BANKRUPTCY HELP OR HURT MY CREDIT?

If you have poor credit it can often help by giving you a clean slate and a fresh start.

HOW MUCH DOES IT COST?

Our bankruptcies start at $395.00 and we offer payment plans – not many bankruptcy attorneys have payment plans.

WILL BANKRUPTCY AFFECT A CO-SIGNOR?

A co-signor has the same responsibility for a co-signed debt after a bankruptcy as they had before the bankruptcy.

CAN I BUY A HOUSE AFTER BANKRUPTCY?

Yes, FHA-VA can loan money 18 months after bankruptcy – some private mortgage companies in less than 12 months.

WILL THE BANKRUPTCY LAWS ALWAYS STAY THE SAME?

No, we are facing the biggest changes in the bankruptcy law over 100 years.

DO I HAVE TO GO TO COURT?

NO, most bankruptcy filings do not require a court appearance although you will have to attend one meeting in front of the trustee assigned to your case – not in front of the bankruptcy judge. The meeting is held in an office building and not in court.