Bankruptcy

We are a debt relief agency. We help people file for bankruptcy under the new bankruptcy laws. The following is not intended to be legal advice. Each case is unique and different. Please call and schedule an appointment to receive advice that addresses your concerns.

ANSWERS TO FREQUENTLY ASKED QUESTIONS
BANKRUPTCY

- Should I file a Chapter 7 or a Chapter 13?
A Chapter 7 is referred to as strict bankruptcy. This means that you are getting rid of all of your debts with a few exceptions. If your individual income is less that forty three thousand one hundred and ninety five dollars ($43,195) for an individual and seventy four thousand three hundred and eighty seven dollars ($74,387) for a family of four you may qualify for a Chapter 7. However if your income is above these amounts Chapter 13 may be an option. This is especially true if you are behind on mortgage and car payments and need time to catch up. Chapter 13 allows you to pay back some of the debt on a percentage basis. The percent that is paid back depends on the amount of assets that you have.

- If I filed bankruptcy before when can I file another one?
This depends on the type of bankruptcy that you filed and what type you wish to file now. If you want to file a Chapter 7 bankruptcy and have previously filed one you must wait eight (8) years from the date of discharge in order to file another Chapter 7. If the debtor wish to file a Chapter 13 after receiving a discharge in a Chapter 7 the debtor must wait four (4) years. If the debtor received a discharge in a Chapter 13 the debtor must wait at least two (2) years before they can file another Chapter 13. Remember the important word is DISCHARGE.

- Will this affect my spouse?
The filing of bankruptcy should not affect your spouse, however, if your spouse co-signed for a loan or is on a contract for a credit card they may be affected. Even though your spouse is not affected the law requires that your spouse’s income be used in order to compute household income.

- If I file bankruptcy can I keep my house, car, and other property?
In most cases you can keep your property. This depends on the type of bankruptcy you file and the liens on the property.

- What information do I need to have before I file?
If you have a house get a copy of the deed and deed of trust from the courthouse where the property is located. If you have a car that you are paying on go to DMV and get a copy of the vehicle transcript (this shows whether there is a valid lien on the car). If the car is paid for bring a copy of the title. If the debtor is employed he needs to bring six (6) months of pay-stubs to my office.