Frequently Asked Questions
Do I lose my home, car and assets?
No. In almost all bankruptcy cases your home, car and assets are protected by bankruptcy exemptions.
Will bankruptcy destroy my credit?
No. Most people have bad credit when they file bankruptcy and once your case is discharged you can start rebuilding your credit. You can not move forward in life when you have outstanding judgments, overdue bills or high balances and amounts owed.
Is bankruptcy an embarrassing process?
No. People often suffer with the anxiety and worry of debt needlessly for a long time. Bankruptcy is designed to give you a fresh start and no one will make you feel guilty, ashamed or embarrassed. We are here to help you.
Will everyone know I filed bankruptcy?
No. Someone would have to go to the bankruptcy court and look it up. Bankruptcy cases are not usually published in a newspaper (unless it was a well known business, etc.) and no one will know unless you tell them.
I had to file bankruptcy before am I allowed to file bankruptcy again?
Yes. The bankruptcy laws are designed to allow you a fresh start if you need it again.
What is the difference between Chapter 7 Bankruptcy and Chapter 13 Bankruptcy?
Chapter 7 Bankruptcy is the most common type of bankruptcy where your income is not sufficient to pay your debts. The case is filed, there is a hearing about 30 days later and your debts are discharged approximately 60 days afterwards. Essentially you get a fresh start in approximately 90 days start to finish. Chapter 13 Bankruptcy allows you to pay past due mortgage payments and stop a foreclosure or if you income is sufficient to pay all or part of your debts you can do so at your own pace and at an amount you can afford but it is only for a specified amount of time. It begins on a certain day and ends on a certain day. You do not pay endlessly and all interest an penalties stop once the case is filed.
I heard the laws changed and you can’t file bankruptcy anymore. Is that true?
No. You can still file bankruptcy and, in fact the laws changed in 2005 and millions of people have filed bankruptcy since then and continue to do so.