I heard the bankruptcy laws have changed. Can I still file for bankruptcy?
The bankruptcy laws did change dramatically in October of 2005, but the change did not make it impossible for people to file. In some cases, an individual's or family's income may affect which chapter of bankruptcy they may file, but the relief afforded by bankruptcy code is still available.
If I file for bankruptcy, do I have to give up my home?
No. Nothing in the bankruptcy code says that you have to give up your home and move simply because you filed for bankruptcy. It is possible, however, to lose your home after you file. There are some very important things you must do, however, in order to avoid losing your home. Some of the most important things are: First, if you have a mortgage, you must be current on all your mortgage payments, including late fees. Second, you must be current on all of your real estate taxes for that home. Third, if you have a mortgage, you must have current homeowner's insurance. Fourth, depending on which state you live in, the amount of equity you have in your home may create some complications that must be addressed before you file your case.
What if I am behind on my mortgage payments but want to keep my house?
You will likely be able to keep your home by filing for Chapter 13 bankruptcy (as opposed to Chapter 7). You will be required to keep future mortgage payments current, and you will have to submit a plan for the repayment of the mortgage arrearage, which may include principal, interest, late charges, and attorney's fees. You must contact an attorney immediately if you have been notified of a foreclosure.
What happens to my retirement, cars, bank accounts, personal belongings, and other assets if I file for bankruptcy?
In the majority of cases, you will be allowed to claim "exemptions" to protect personal property. In some cases, people will have assets that cannot be protected and may be ordered sold in order to pay off your debts. An attorney will be able to tell you whether property can be protected or not.
I don't want to declare bankruptcy on my car, home, and other debts. How do I do that?
You MUST list all of your debts, even those you intend on repaying. In most cases, as long as you are current on the payments, you will be able to keep your home or your cars. So even though bankruptcy may not affect a particular debt, you are still obligated to list it.
Is there such a thing as a "medical bankruptcy"?
No. There are various chapters of bankruptcy available, but there is not a "medical bankruptcy" provision in the code.
Do I have to list all of my assets?
Yes. Failure to identify any asset may be considered a crime.
Can I sell an asset to a family member for a dollar and then buy it back after I get done with bankruptcy?
No. This type of transaction is almost always a violation of the bankruptcy code and is likely a criminal act.
How much does it cost to file for bankruptcy?
The Court charges you a filing fee of either $299.00 or $274.00 depending on what chapter you file under. At present, this law firm charges $1,201.00 in attorney's fees for a Chapter 7. Chapter 13 prices vary, and you will need to consult with our office for more information.
How will bankruptcy affect my credit?
A bankruptcy can stay on your credit report for up to ten years. How that information is used by banks or other lenders is completely up to them. Our experience is that our clients are often able to obtain financing shortly after their case is completed (within months).