Will
I lose all my property if I file for bankruptcy?
A:
No. The bankruptcy code allows you certain exemptions to protect your property
in bankruptcy. Most people do not exceed these exemptions and do not lose any of
their property. If you are one of those few people who do exceed their
exemptions, I will probably advise you to file a Chapter 13 bankruptcy. Except
in a few rare cases, none of your property will be sold in a Chapter 13
case.
Can I keep paying (and keep) my house
and/or car after I file for bankruptcy?
A:
Yes, in most cases.
In a Chapter 7 bankruptcy, unless you are several months or more delinquent in
your house or car payments, you can continue making your monthly payments (you
will have to bring them current) and keep your property. If you are being
foreclosed or in danger of car repossession, a Chapter 13 bankruptcy will allow
you to keep your property, so long as you are able to make all future monthly
payments and pay a little extra each month to cure the
arrearage.
What's
the difference between Chapter 7 and Chapter 13 bankruptcy?
A:
A Chapter 7 bankruptcy allows you to discharge
unsecured debts without making payments to those creditors. However, if you have
real or personal property which exceeds your allowable exemptions, the Chapter 7
Trustee will sell such property and give the money to your unsecured
creditors. Not everyone qualifies for Chapter 7 bankruptcy. The
primary reason for this is if your income is higher than what is allowed by the
Bankruptcy code.
A Chapter 13
bankruptcy is similar to debt consolidation, done under the supervision of the
bankruptcy court. Most Chapter 13 plans provide for making monthly
payments to your unsecured creditors for a period of at least 36 months, and in
some cases longer. After that period, you are able to receive a full
discharge of all listed unsecured debt. The amount of your monthly payment
depends upon several factors, including your disposable income (after normal
monthly expenses) and the excess equity in your property that exceeds your
allowable exemptions. I will be happy to explain all this to you at your free
consultation.
How
difficult is it to re-establish credit after receiving a bankruptcy discharge?
A:
The majority of
Chapter 7 clients have been able to obtain new credit cards, finance car
purchases, purchase or refinance homes, and obtain other kinds of credit within
two years of obtaining their discharge. Many Chapter 13 clients have been able
to finance the purchase of needed cars and refinance their homes while they are
still in Chapter 13 bankruptcy. Under the current economic circumstances, it is
difficult to predict whether people will find it more difficult than in the past
to re-establish their credit after completing either a Chapter 7 or 13 bankruptcy. However, most people contemplating
bankruptcy would even more difficult problems obtaining credit without
bankruptcy.
What's
the difference between a secured debt and an unsecured debt?
A:
A secured debt
(like a mortgage on a house or a car loan) gives the creditor the right to take
back the security (car, house, furniture, etc.) if you fail to make your
payments. An unsecured debt (like a Visa or MC credit card, medical bill,
utility bill, rent, etc.) does not give the creditor the right to repossess any
property you have.
When
can I see you for a consultation, and is there a charge?
A:
I work strictly by
appointment, during weekdays. My office is located in downtown
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The assistance offered may involve bankruptcy relief.
We
are a debt relief agency. We help people file for bankruptcy relief under
the Bankruptcy Code.