Can I protect my home and personal property in bankruptcy?
If you owe a large amount of debt, you may still possess the right to protect important assets, including your home, personal property, and money in bank accounts. Property that can be protected is called "exempt property," which means that you will not lose property in your bankruptcy if the total property value is less than the exemption amount. Many clients do not lose their assets.
Will bankruptcy stop a foreclosure?
Bankruptcy can stop foreclosure. In a Chapter 13 repayment plan, you can keep your home by paying your arrears in full through a plan payment. In a Chapter 7, the automatic stay will temporarily prevent foreclosure, providing you with time to catch up on your mortgage payments. If you are at risk of losing your home, bankruptcy may be a powerful solution which can prevent that devastating effect of debt.
Can I keep my car?
Providing that you are current on the car payments and the vehicle is insured, we can list your intention as "reaffirm," and you will continue to make your regular monthly payments. Doing so may allow you to keep possession of the vehicle. If you wish to surrender the vehicle because you are not able to afford the payments, this can be accomplished through bankruptcy. Through this process, your car loan lender will retain possession of the vehicle, but you will not be liable for any deficiency.
Who can file for bankruptcy?
Under the United States Bankruptcy Code, almost anyone can file for bankruptcy. There are a few exceptions, and your specific case may limit you to a specific chapter you can file under, which is why it is important you speak with an attorney.
What will happen to my credit?
Depending on the chapter that you file under, your credit score will reflect the bankruptcy for a few years. After you file though, you can begin to rebuild your credit almost immediately. An attorney from our team can help you understand your specific credit situation.
Does my spouse have to file with me?
No. If you and your spouse wish to file for bankruptcy separately, you may; however, there are some situations for which joint filing may yield better results than single-filing status. You and your attorney can discuss your options.
Will all of my debts be erased?
The vast majority of debts are erased (discharged). There are certain debts that are not discharged, however. The most common types of nondischargeable debt are student loans, some taxes, court ordered support payments, and court fines.
Can I file for bankruptcy more than once?
Filing for bankruptcy more than once is possible, but it is best to avoid doing so. Depending on the chapter you filed under originally and the chapter that you wish to file under now, your requirements may vary. Typically, you have to wait at least eight years after you file for Chapter 7 bankruptcy and at least two years after Chapter 13 bankruptcy to re-file.
How do I know if bankruptcy is right for me?
If you are burdened by debt that is quickly adding up, bankruptcy may be a good option for you. Most individuals who file are no longer able to make even minimal payments against their debt and are in desperate need of assistance. An attorney from our team can help determine if you are eligible.
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