Frequently Asked Questions

1.  What Can Bankruptcy Do For Me?

Bankruptcy may make it possible for you to:
*Eliminate most or all of your debts
*Stop foreclosure on your home
*Prevent repossession of a car or other property
*Stop wage garnishment and debt collection harassment

2.  What Different Types of Bankruptcy Should I Consider?

Most individuals file either a Chapter 7 or Chapter 13:

* Chapter 7 is known as a "liquidation".  It requires the debtor to give up property which exceeds
certain limits called "exemptions", so that the property can be sold to pay creditors

* Chapter 13 requires a debtor to file a plan to pay debts or parts of debt from their current income

3.  What Will Happen to My Home or Car if I File Bankruptcy?

In most cases you will not lose your home or car as long as your equity in the property is fully exempt.   A Chapter 13 allows the debtor in many cases to continue to make the monthly payment on their car or home and keep the asset. 

4.  Will Bankruptcy Wipe Out All of My Debts?

Yes, a Chapter 7 will wipe out most debts.  Bankruptcy will usually not wipe out:
*Money owed for child support or alimony
*Debts not listed on your bankruptcy petition
*Student Loans

5.  Will I Have To Go To Court?

In most cases, you will only have to go to a proceeding called a "341 Creditors Meeting" to meet with the Trustee and any creditors who choose to come.  Most of the time, this meeting will be a short procedure where your asked a few questions about your bankruptcy forms and your financial situation. 

6.  I'm Married, Can I File by Myself?

Yes, but your spouse will be liable for any joint debts.   If you file together, you will be able to double your exemptions. 

7.  Will Filing Bankruptcy Stop Bill Collectors From Calling?

Yes.  The automatic stay prevents bill collectors from calling or taking any legal action against you.

8.  How Long After Filing Will The Creditors Stop Calling?

Once a creditor becomes aware of a bankruptcy filing, it must immediately stop all collection efforts.  The bankruptcy court will mail a letter to all of your creditors listed in your petition.  If you receive a call, you can give the creditor your bankruptcy case number and all calls from them should end.

9.  What Do I Need To Bring To The 341 Meeting of Creditors?

You must bring your driver's license and your social security card to the 341 meeting.

10.  Will I lose my 401(K) If I File Bankruptcy?

No, in most situations your 401(K) is protected and you will not have to cash it out to pay off creditors.

11.  HOW CAN I OBTAIN MY CREDIT REPORT?

You can obtain a FREE credit report from www.annualcreditreport.com.  Do not confuse this website with the one advertised on TV with the catchy jingle!  

You may also call:

Equifax:  800-685-1111
Experian:  888-397-3742
TransUnion:  800-916-8800