FAQs

Chapter 7, also known as straight liquidation, typically eliminates unsecured debts such as credit cards and medical bills, offering a fresh financial start. Chapter 13, often referred to as debt consolidation or the wage earners plan, is primarily designed to halt foreclosures and repossessions. It allows for the repayment of overdue amounts over a 36 to 60-month period. In Chapter 13, it's possible to consolidate various debts, including car payments, tax debts, student loans, and support arrears.

Qualification for Chapter 7 bankruptcy isn't determined by a specific debt amount. The primary requirement is having limited excess income after covering regular living expenses. If your monthly income significantly exceeds your expenses, excluding debts that would be eliminated in bankruptcy, you may be directed towards a Chapter 13 bankruptcy instead, as you might have the capacity to repay some of your debt.

Generally, if your assets fall within the legal exemptions, you should retain your property. These exemptions include up to $85,400 equity per person in your primary residence, up to $4,550 per person in vehicle equity, and up to $1,150 per person in personal property. Additional exemptions cover retirement accounts, social security income, and disability income. In some cases, you may be eligible for federal exemptions, which can be more comprehensive.

Generally, in a Chapter 7 bankruptcy, if your assets is an official order issued by the bankruptcy judge. This order declares that all eligible debts are discharged, effectively releasing you from those financial obligations. It's important to note that not all debts can be discharged, and we will discuss with you which debts fall into this category. You shouldn't lose any property in Chapter 13 bankruptcy, unless the property is not necessary for an effective reorganization.

Not all debts can be discharged, such as student loans, alimony, child support, property settlement agreements, and certain income tax liabilities. In Chapter 13 bankruptcy, other debts may also be dischargeable. We will discuss with you which debts fall into this category.

Eligibility for Chapter 13 bankruptcy primarily depends on having a consistent source of income. If you have regular income, you should generally qualify to file for Chapter 13 bankruptcy. Both Chapter 7 and Chapter 13 bankruptcies can be kept in the public records section of your credit report for 10 years.

Yes, it is possible to file for bankruptcy individually, even if both names are on the mortgage and foreclosure proceedings have started. If only one spouse requires bankruptcy protection beyond the foreclosure issue, that spouse can file independently while the other remains outside the bankruptcy process.

The meeting of creditors is a scheduled event that occurs approximately 30 days after your bankruptcy filing. This meeting is conducted by a court-appointed trustee, typically a lawyer, rather than a judge. The trustee will ask you questions under oath about your assets and debts, usually lasting about five minutes. While creditors are permitted to attend and ask questions, their presence is uncommon.

The duration of a Chapter 13 bankruptcy reorganization plan ranges from a minimum of 36 months to a maximum of 60 months.

A Chapter 13 plan is a document prepared by your attorney that outlines the proposed method and amount for repaying your debts. The repayment amount is determined based on several factors including your assets, disposable income, secured debt, and any arrears owed.

Chapter 13 bankruptcy is a debt repayment plan for individuals with regular income. Unlike Chapter 7, which liquidates assets to pay creditors, Chapter 13 allows you to keep your property while repaying debts over 3-5 years. It's ideal for those who want to catch up on mortgage payments or have assets they wish to protect.

A Chapter 13 bankruptcy typically remains on your credit report for 7 years from the date of filing. However, its impact on your credit score diminishes over time, especially if you maintain good financial habits after the bankruptcy is discharged.

Yes, self-employed individuals can file for Chapter 13 bankruptcy. However, you must have a regular income and be able to propose a feasible repayment plan. Our attorneys can help you navigate the complexities of filing as a self-employed person and ensure your plan meets court requirements.

Chapter 7 bankruptcy is a legal process that allows individuals to eliminate most unsecured debts. It involves liquidating non-exempt assets to pay creditors, although many filers can keep most or all of their property. The process typically takes 3-6 months and ends with a discharge of eligible debts, giving you a fresh financial start.

Eligibility for Chapter 7 bankruptcy depends on several factors, including your income, expenses, and debts. Generally, you must pass a means test, which compares your income to the median income in your state. If your income is below the median or you pass the means test, you may qualify. It's best to consult with a bankruptcy attorney to determine your eligibility.

Not necessarily. Generally, in a Chapter 7 bankruptcy, if your assets can keep most or all of their property through exemptions. These exemptions vary by state but often cover essentials like your home, car, personal belongings, and retirement accounts up to certain values. A skilled bankruptcy attorney can help you understand which exemptions apply to your case and how to best protect your assets.