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Bankruptcy FAQ’s

What is bankruptcy?

Bankruptcy is a legal proceeding in which an individual who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law.

I have a lot of debt and just went through a major life change such as loss of job, major medical event, etc. Should I get legal advice?

Yes. Many people qualify for bankruptcy that do not realize they are qualified. Depending on your situation, this may be the best option for you.

Should I try a debt consolidation company first before filing for bankruptcy?

Creditors (people you owe money to) are not required to work with debt consolidation companies. Creditors can opt to continue with suing and garnishment. However, a chapter 13 bankruptcy is enforceable by federal law. A chapter 13 does the same thing as far as consolidating debts, but if the creditors wish to get paid they must work with the court system and while you are in a chapter 13 they can not sue or garnish you.

Does bankruptcy ruin my credit?

That is not necessarily true. Contact a bankruptcy attorney to discuss why.

Will I need to pay my student loans after filing for bankruptcy?

Student loans, generally can not be discharged.. (There are ways but only in extreme circumstances). However, bankruptcy may be able to modify the payment or interest.

What kind of bankruptcy should I file if I want to keep my home?

You can keep your home and car in both types of bankruptcy

I have already filed bankruptcy 12 years ago. How many times can a person file?

You can only file once every 8 years with some limited exceptions. If you have filed within the last 8 yrs but are experiencing financial difficulties please contact us.

If I file bankruptcy, how long can I take to repay my debts?

A Chapter 13 can be up to 5 years.

Can only one spouse file bankruptcy or must both file?

If you are married both of you are not required to file. There may be certain advantages to filing together or one spouse not filing. This can be explained in detail during your free consultation.

Can I file bankruptcy on income taxes?

You can only wipe out income taxes in very limited situations. However, a Chapter 13 can stop interest and fees from piling up and may reduce your payment.