Bankruptcy FAQs

Jump to Frequently Asked Questions about Bankruptcy.

During his 27 years of practicing law, Danton C. Hejtmanek has represented numerous clients in the filing of a bankruptcy. Title 11 of the United States Code governs bankruptcy proceedings and the federal government has exclusive jurisdiction over such matters. Unlike personal injury claims, family law matters, and probate proceedings, a bankruptcy can only be filed in a Federal Bankruptcy Court.

The purpose of bankruptcy is to help both debtors and creditors. Debtors are able to receive relief from their overwhelming debts, and creditors are able to obtain assets that are not essential to the debtor. The federal government has established different types of bankruptcy for different financial situations. Chapter 7 and Chapter 13 are the most common forms of bankruptcy for individuals. Mr. Hejtmanek will assist you in determining what type of bankruptcy is best for your situation. He will help you determine which of your debt are considered “secured or unsecured” and which of your assets are protected from creditors. Mr. Hejtmanek will also help you deal with the harassing phone calls and letters from collection agencies.

Why are there different types of Bankruptcy?

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Can creditors still contact me once I have filed for bankruptcy?

Can all my debts be discharged?

Do I have to list all creditors?

Will I lose my car?

Does my spouse have to join with me in the bankruptcy?

Do I have to list my doctor with whom I have ongoing treatment?

What is the first step to take to begin the process?

Is there a charge for the first consultation?

Why are there different types of Bankruptcy? Back to FAQs

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.

What is the difference between Chapter 7 and Chapter 13 bankruptcy? Back to FAQs

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.

Can creditors still contact me once I have filed for bankruptcy? Back to FAQs

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

Can all my debts be discharged? Back to FAQs

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.

Do I have to list all creditors?Back to FAQs

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.

Will I lose my car? Back to FAQs

No, as long as the lessor of the amount of the debt or the value of the car is paid through the bankruptcy plan.

Does my spouse have to join with me in the bankruptcy Back to FAQs

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.

Do I have to list my doctor with whom I have ongoing treatment? Back to FAQs

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

What is the first step to take to begin the process? Back to FAQs

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.

Is there a charge for the first consultation? Back to FAQs

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.