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Frequently Asked Questions
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What is Bankruptcy?
Bankruptcy is a legal proceeding in which a person who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to law.
How can Bankruptcy help me?
Bankruptcy may make it possible for you to:
Eliminate the legal obligation to pay most or all of your debts. This is called a discharge of debts. It is designed to give you a fresh financial start.
Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. (Bankruptcy does not, however, automatically eliminate mortgages and other liens on your property without payment.)
Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.
Stop wage garnishment, bank account attachments, debt collection harassment, and similar creditor actions to collect a debt.
Restore or prevent termination of utility service.
Allow you to challenge the claims of creditors, who have committed fraud or who are otherwise trying to collect more than what you really owe.
How does Bankruptcy affect my credit?
There is no clear answer to this question. If you are already behind in your bills, your credit is not good. Bankruptcy will probably not make the problem worse. You should keep in mind that the purpose of bankruptcy is to help you because you cannot pay your bills and not to improve your credit standing. In spite of this, there may be ways to preserve your credit with businesses.
The fact that you have filed for bankruptcy can appear on your credit record for ten years. The best way for you to improve your credit after bankruptcy is to pay your bills in a timely manner and to keep out of debt, as much as possible.
What does it cost to file for Bankruptcy?
There is no charge for the initial appointment. And after deciding that bankruptcy is the right option for you, We have an installment plan that can make the fee payable on a monthly basis. It costs $209.00 for filing fees to file a Chapter 7 petition and $194.00 to file a Chapter 13 petition. If you are married, you and your spouse can file jointly. The attorneys fees for a Chapter 7 are $800.00 and $2,000.00 for a Chapter 13. If you are in business or your bankruptcy requires special litigation, the fee can be more. It is important for you to realize that the type of bankruptcy that you file may not be an option that you can choose. After an in depth interview with you, we will advise you as to the affect that bankruptcy may have upon you and the type of bankruptcy that would be best for you, if any, to file.
What should I bring with me to the Initial Appointment?
In order for us to properly evaluate your case, we must have a thorough understanding of your financial circumstances. Therefore, we recommend that you bring the following with you when you come for the initial appointment:
All statements from all of your creditors, any payment books for mortgages, car loans, finance companies or other lenders. The statements should include the name and address of the creditor, the balance of the account and the account number.
If you signed any agreement with a lender, please bring that also. This would include car loans, mortgages, finance agreements and other documentation.
A list of all your major assets and a value for each item. Major assets can be a car, house, stocks, bonds, pension plans, 401K accounts, IRAs, and bank accounts.
Please bring a copy of your most recent pay stubs. If you do not get a pay stub, please bring an itemization of your gross pay and any deductions from your pay.
An itemized budget of your monthly expenses, such as, rent, mortgage, utilities, groceries, auto insurance and other items.
If all of the items are not available at the time of the initial appointment, bring what you can. The appointment will be approximately 11/2 to 2 hours in length. We encourage both spouses to come to the initial appointment.
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