Quick Answers
1. Will the bankruptcy stop bill collectors from calling?
Yes. The automatic stay prevents bill collectors from taking any action to
collect debts.
2. Who notifies the creditors and bill collectors?
After the bankruptcy petition is filed, the court mails a notice to all
creditors listed in the schedules.
3. Will my employer and landlord find out about my bankruptcy?
Bankruptcy petitions are public records. However, under normal circumstances,
unless your employer or landlord is a creditor, they will not know you filed a
bankruptcy petition. In some instances, Chapter 13 debtors are required to make
payments through wage garnishment and their employer will learn about the
bankruptcy.
4. Will I lose my house or car if I file for bankruptcy?
Chapters 7 and 13 bankruptcy exempts most assets allowing most of our clients to
keep everything and lose nothing.
5. Can my employer fire me for filing bankruptcy?
No. 11 U.S.C. sec. 525 prohibits government units and private employers from
discriminating against you because you filed a bankruptcy petition.
6. How is my credit affected by bankruptcy?
Bankruptcy remains on your credit for 10 years. By not filing,
your credit may show
negatives for seven years from the time you become current. When you file for
bankruptcy, negative reporting stops immediately. This allows you to begin
re-establishing credit faster by keeping your house, making auto or other payments
current.
7. Can you stop my home foreclosure?
Chapter 7 Bankruptcy can only temporarily stop foreclosure until your debt is
discharged or your creditor lifts the “automatic stay.” A
Chapter 13 Bankruptcy
filing can stall or derail a foreclosure proceeding. That’s because of
bankruptcy’s “automatic stay” provisions that force creditors to the sidelines
while the bankruptcy court sorts things out. Chapter 13 Bankruptcy completely stops
foreclosure if back payments are kept current in the payment plan and regular
mortgage payments are kept current after filing.
8. Can I eliminate my home equity line and keep my house by filing
bankruptcy?
If the value of your house is
equal to or less than the balance of the first mortgage, Chapter
13 Bankruptcy allows you to keep your house while discharging the home equity line along
with the credit card debt.
9. How will my ability to get rental housing be affected?
Many rental applications require a potential tenant to disclose whether he or
she has ever filed for bankruptcy. The risk that a bankruptcy might prevent a
potential client from obtaining an apartment in the future should be considered.
However, the issue can often be resolved by offering a potential landlord a
larger security deposit.
10. Can you stop wage garnishment?
Yes. We make most creditors stop garnishing your wages when your case is filed.
This does not apply to current child support payments.
11. Does bankruptcy stops lawsuits and judgments?
Yes. Immediately when we file your case.
12. Can you stop auto repossession?
Yes. Immediately upon filing.
13. Will my bank account be affected?
If your bank is an unsecured creditor, close your account and move to a bank
where you owe nothing. Otherwise, at the time of filing, your bank can offset
your account.
14. How long before I can re-file for bankruptcy?
You are eligible to receive a discharge in Chapter 7 Bankruptcy even if you previously received a Chapter
7 Bankruptcy discharge, as long as your Chapter 7 discharge was entered at least eight years before the filing
of your current Chapter 7 case. You can also receive a Chapter 7 discharge in your current case if you previously
filed for Chapter 13 Bankruptcy, so long as the discharge in your Chapter 13 case was entered at least four years
before the filing of your new Chapter 7 case.
You are eligible to receive a discharge in Chapter 13 Bankruptcy even if you previously
received a Chapter 7 Bankruptcy discharge, as long as your Chapter 7 discharge was entered
at least four years before the filing of your current Chapter 13 case. You can also receive
a Chapter 13 discharge in your current case if you previously filed for Chapter 13 Bankruptcy,
so long as the discharge in your old case was entered at least two years before the filing of
your new Chapter 13 case.
15. What if my question isn’t answered here?
Set up an appointment for a free initial consultation with one of our attorneys.
We will provide you with the guidance you need to decide whether to file a
bankruptcy petition.