What exactly is bankruptcy?

Bankruptcy is a court proceeding that provides relief from debts for people or businesses under attack by creditors and at risk of losing assets. It is a legal right to request this relief. Our bankruptcy laws protect families and their property, and provide good people with the fresh start they need and deserve.

Does bankruptcy mean I lose everything?

No, bankruptcy law allows you to exempt certain property, such as your home, household furnishings, vehicles, retirement accounts, or tools of your trade. You must continue making payments on secured debts, like mortgages and vehicle loans, to keep your home and vehicle(s).

What is Chapter 7?

Chapter 7, or "straight bankruptcy," discharges - eliminates permanently - most unsecured debts (i.e. credit card bills, medical bills, and personal loans). It stops repossessions, foreclosures, and garnishments, but doesn't require a repayment plan. You typically keep all your property and can retain property with liens, like your home or vehicle(s), by reaffirming and continuing to pay your lienholders.

What is Chapter 13?

Chapter 13 establishes a repayment plan for people with regular income. Tax debts can be repaid through the plan, usually without interest and penalties, protecting people who may have problems with the IRS.

What if I'm currently in foreclosure?

Chapter 13 stops foreclosure sales and allows past-due house payments to be repaid over three to five years. You may also qualify for home mortgage loan modifications during your Chapter 13.

Will everyone know I've filed for bankruptcy?

Bankruptcy is a matter of public record, but it's rarely accessible without knowing where to look and paying a fee. In a Chapter 7 bankruptcy, your employer isn't notified. Under Chapter 13, payroll orders are typically required. As a result, the company you work for will be notified if you file. If you're married, either you or your spouse's paycheck will be subject to a payroll deduction according to the court-approved plan, so that employer will be aware of the filing. Federal law prohibits employers from terminating a person’s employment because they file bankruptcy.

Will I ever be able to get credit again?

Yes, you can qualify for credit, such as credit cards, vehicle loans, and mortgage financing relatively soon after bankruptcy. Bankruptcy remains on your credit report for ten years, but most clients' credit scores improve dramatically within the first two years. Responsible choices and stable employment after a bankruptcy discharge are still necessary.

How can I stop creditors from calling at home and work?

The Bankruptcy Code requires creditors to stop all collection proceedings once you file. Additionally, the Fair Debt Collection Practices Act requires debt collectors to go through your attorney once you've retained one, even before you file.

Can bankruptcy stop creditors from taking money directly from my bank account?

Yes, creditors must stop taking money from your account once you file. We will contact your creditors immediately to demand them to stop. We recommend closing your accounts before filing bankruptcy if you owe money to that bank or credit union.

What if I currently have a judgment against me in civil court?

Judgments can be discharged under Chapter 7 and Chapter 13 bankruptcy, and judgment liens can be removed after your bankruptcy is completed through a separate procedure.

What if I want to pay back some of my creditors?

You must list all creditors in a Chapter 7 filing, but you can still voluntarily pay certain creditors after filing. In a Chapter 13 filing, all creditors must be listed, and they will receive payments according to your approved plan.

Will I lose my business if I'm self-employed?

We can discuss the best option for keeping or closing your business based on your goals and financial circumstances.

Is the Chapter that I file related to my income level?

Yes, as an experienced bankruptcy attorney, I will make every effort to qualify you for Chapter 7 if that's your preference. However, under current bankruptcy law, an income test will determine your eligibility.