Questions About Your Bankruptcy

When will the bankruptcy give me protection and relief from creditors?

The moment your bankruptcy petition is filed you will have protection. When a creditor contacts you, inform them of the case number we have provided you and request that they no longer contact you. They will stop and if they do not, they will be in violation of the automatic stay, which makes them subject to Court sanctions.

What is the automatic stay?

Think of the automatic stay as a timeout. It stops the action. The automatic stay goes into effect the moment a petition is filed with the Court. All of your creditors will be subject to it. The stay orders creditors to halt debt collection and stop any new collection efforts. As soon as they get notice of this filing, they must stop. Creditors will get written notices from the Court. This is why it is extremely important for you to provide us with details on each and every creditor you have.

Is it possible for creditors to find a way around the automatic stay?

Yes, it is possible, in some cases when the debt is secured by collateral, such as your automobile. The bank can move to lift the stay in order to repossess your vehicle, but if you are behind on the payments.

What is a discharge?

A court order that gives you a fresh start is called a discharge. This relieves you from obligations to pay all unsecured debts that are listed in your Chapter 7 schedules and petition. Further, unsecured debts remaining on a Chapter 13 schedules and petition are discharged at the completion of the plan. Again, it is important to be detailed when informing us of all your debts. If it is not listed your schedules, it won’t be discharged.

Will I lose my vehicle or house?

As long as you make payments on time for your vehicle and house, and provided that the equity you have in those is not greater than the exemption, then you won’t lose them.

What does it mean to reaffirm a debt?

This means that you agree you are liable for a debt that could be discharged in your case. A reaffirmation agreement may be signed and filed with the clerk. In the future, if you break the agreement, you will still be responsible for this outstanding debt.

Will I lose my retirement accounts or 401(K)?

You are able to keep these retirement accounts more often than not. The bankruptcy laws include exemptions and/or exclusions that protect qualified retirement accounts.

Can I include my utility bills in my case?

Yes, but this may affect your future payments as you may have to pay a security deposit with a utility company. All prior bills for utilities be eliminated in the bankruptcy case, but you do have to pay the bills from the date of the filing forward. (Note: cable TV is not considered a utility.)

Will a bankruptcy eliminate the unpaid child support or spousal maintenance?

It will not. This priority debt is not dischargeable.

If I file for bankruptcy, will creditors attempt to collect debts from my co-debtors?

This is up to the creditors and is possible. They have the right to do so, but may decide not to if they believe that collecting the money isn’t possible.

Will filing bankruptcy allow for my driver’s license to be reinstated?

Often, the answer is yes. It may, of course, depend on why the license was suspended. If you were driving without insurance or in a car accident, the bankruptcy could permit the driver’s license to be reinstated.

When will my bankruptcy be removed from my credit report?

Bankruptcy stays on your credit report for up to 10 years.

Will my employer find out about my bankruptcy?

It is not necessary to inform your employer unless your current wages are being garnished and you want that to stop. Then, they must be notified.

Will I need to appear in Court?

Usually, the answer is no. You will, however, need to appear at a 341 meeting with the trustee. Here, you will be asked questions under oath from the bankruptcy trustee. Creditors may appear at this meeting, but that is rare.

Will I be able to get credit after the bankruptcy?

Yes. You will be seen as a fairly minor credit risk because creditors know that you cannot refile for bankruptcy in another 8 years. After 3 years, it is possible to get a mortgage with a fairly low rate. Car lenders may wait until you have received your discharge before giving you a loan.

More Questions? Contact us to get Immediate Answers

Every bankruptcy case is a little different, so it is important to discuss your situation with us before making your decision. If any of your questions or concerns were not answered here, please contact our attorneys today.