Frequently Asked Questions
Most frequent questions and answers
While it is not legally required to use an attorney in a bankruptcy case, having one can be beneficial. An experienced lawyer will guide you through the complex process and handle all paperwork associated with filing for bankruptcy. Additionally, an attorney can review your situation and help you determine the best type of bankruptcy for your needs.
No. You are required to disclose all of your assets and income during a bankruptcy filing. If you attempt to conceal any of these, it could result in criminal penalties.
A 341 meeting, also known as a meeting of creditors, is where you are required to answer questions under oath about your financial situation. The bankruptcy trustee will call on the debtor (you) and any creditors who choose to attend the hearing. You must provide truthful answers during this meeting for your petition for bankruptcy to be approved.
No. Depending on the type of bankruptcy that you file, some debts may be discharged or restructured under the terms of the filing. Your attorney will help you determine which debts are eligible for discharge and which are not. Additionally, certain types of secured debt such as mortgages and car loans may be restructured to allow for lower monthly payments or longer repayment terms.
Chapter 7 FAQ's
Most frequent questions and answers
Chapter 7 bankruptcy is a type of liquidation filing. During this process, your non-exempt assets are sold to pay creditors. After the proceedings are complete, most of the remaining debt is discharged and you start with a clean slate financially.
The debtor is the person filing for bankruptcy. The debtor is responsible for providing truthful information during the proceedings and ensuring that all debts are properly represented. Additionally, the debtor will be required to attend a 341 meeting of creditors to answer any questions about their financial situation under oath.
Yes. You can keep your home as long as you continue to make payments on the mortgage. Filing for bankruptcy does not automatically mean that you will have to give up your home. Additionally, Chapter 13 bankruptcy may allow you to restructure your mortgage payments and stay in the home.
Yes. You may be required to give up certain property, such as jewelry or a car, to pay your creditors. In most cases, states have laws that allow debtors to keep certain essential household items and personal possessions. Your attorney can provide more information about what you can keep during the bankruptcy filing process.
Chapter 13 FAQs
Most frequent questions and answers on car accident injury
Chapter 13 can be a good option if you want to keep your property and catch up on past-due payments. It also allows you the opportunity to restructure payment terms with your creditors. However, it’s important to note that Chapter 13 comes with additional fees, such as filing costs and attorney fees, making it more expensive than other debt repayment options. Your attorney can help you decide if Chapter 13 is the best choice for your situation.
The amount of debt you have to repay in Chapter 13 depends on the total balance of your debts, as well as the terms of the repayment plan. Generally, most Chapter 13 filers are required to pay back a portion of their debt over 3-5 years. Your attorney can provide more information about how much you will be required to repay.
No. Chapter 13 bankruptcy does not wipe out all debt. You will still be responsible for paying back certain types of debts, such as child support or student loans that are not eligible to be discharged in a Chapter 7 filing. Additionally, you will likely have to pay back any secured creditors who filed a claim against you during the proceedings. Your attorney can provide more information about which debts will remain after your Chapter 13 discharge.
The decision of whether or not to pursue a Chapter 13 bankruptcy filing is a personal one. Generally, if you have significant assets that you want to keep and your income is too high for a Chapter 7 filing, then Chapter 13 might be the better option. Additionally, if you are behind on mortgage payments and would like to restructure them, then Chapter 13 can be a good choice. Ultimately, it is best to discuss the pros and cons of each option with your attorney before making a decision.