Frequently Asked Questions

Bankruptcy is the legal status that individuals or businesses may declare when they are unable to repay their debts.  It provides the framework for managing debt, in many cases allows for the discharge of debts, and provides a fresh financial start.  

The Bankruptcy Code allows individuals filing bankruptcy to keep their home and protect the equity in their homestead.  The law also allows individuals to protect a portion of the equity in their vehicle(s).  

It is important to consult with a Bankruptcy Attorney to develop a comprehensive plan, so you are able to keep your assets.      

Chapter 7 (Liquidation)

An individual, or married couple, is able to discharge most debts, often without being required to pay any of their debts.  This individual is only permitted to keep a certain amount of assets (vehicle(s), etc.) and must qualify based upon their income.  Any assets of the individual over the amount permitted would be liquidated and the proceeds would be provided to their creditors. 

Chapter 13 (Reorganization)

An individual, or married couple, is also able to discharge most debts but would make a payment plan through the Bankruptcy Court.  This individual would be able to keep all of their assets (vehicle(s), etc.) and is not limited based upon their income.  Depending on the type of debt, the individual could also restructure their debt obligations with better terms (i.e. interest rate, term, etc.).   

The process of filing for Bankruptcy starts with consulting with a Bankruptcy Attorney who can provide guidance based upon your individualized circumstances.  

We provide a FREE consultation and develop a strategy to eliminate, or reorganize, your debts based upon your individual financial situation.      

Bankruptcy provides an individual significant protection against your creditors.  Filing a Bankruptcy may prevent any of the following: 

• Stop a Foreclosure being filed on your home; 
• Stop a Wage Garnishment;
• Stop a Repossession of your vehicle; and/or
• Stop Harassing Phone Calls. 

Filing Bankruptcy often involves only 1 virtual Court appearance.  

While many individuals are hesitant about appearing in Court, Bankruptcy often reduces the types you might appear in Court since most creditors cannot file, or proceed with, lawsuits once a Bankruptcy is filed.       

Student loans are not easily discharged.  Only in very limited circumstances may student loans be discharged in a Bankruptcy. 

The filing of Bankruptcy will appear on your credit report and may negatively impact your credit score.  Depending on your individual circumstances, your credit score may increase based upon the elimination of debt.