Bankruptcy FAQs

A. The federal government has recognized the need for different types of bankruptcy to meet the different circumstances of the debtors. Some debtors are so overburdened with debt that they are incapable of paying back their obligation, while others may have the ability to pay their obligations but need to have their debt restructured. hide

A. Chapter 7 is also known as "straight bankruptcy". Nonexempt property is taken by the trustee to repay the creditors. In return the unsecured debt is eliminated. This allows for a clean start. Chapter 13 is also known as the “wage earner’s plan”. Chapter 13 allows for the debtor to keep their property and make regular payments. The purpose is to repay some of the debt rather than simply canceling it out. hide

A. No. Creditors are forbidden from contacting debtors once bankruptcy proceedings have been filed. hide

A. Maybe, there are certain debts that the bankruptcy code will not allow to be discharged. Student loans and income taxes are a couple of examples. hide

A. Yes. Whether the debts are dischargeable or not under the bankruptcy, every creditor must be listed. The bankruptcy plan may specify how various creditors are handled, but they still must be listed. hide

A. No, as long as the amount that is owed on the car is paid, or in some instances, the lesser of the amount owed or the value of the car is paid through a bankruptcy plan. hide

A. No, however, certain information concerning spouses must be disclosed in the bankruptcy plan. This would include the income of the spouse, proportionate share of household expenses of the spouse, and co-signed debts with the spouse. hide

A. Yes. All creditors must be listed; however, through a Chapter 13 Plan the Court may allow you to pay doctors under certain circumstances. hide

A. A complete list of all creditors must be assembled, including mailing address for everybody that you owe. By contacting our law firm we can provide you with a form to start compiling the list. hide

A. No. Our law firm does not charge for the first consultation to discuss the options, procedures and the costs involved in filing an individual bankruptcy. hide