Frequently Asked Questions

How much does it cost to file?

We offer low fees. We have flexible payment plans that work within your budget. You can pay as low as $50 a month.

Does my spouse have to file with me?

No, there is no requirement that both spouses file, either under Chapter 7 or Chapter 13. In some situations, filing for both of you might not be necessary, though in most cases the financial problems will best be solved with both spouses participating in a joint filing. This is a matter that we can discuss at the initial free consultation.

Can I be fired or denied employment because of a bankruptcy?

The Bankruptcy Code prohibits a private employer from discriminating against an employee or prospective employee solely because of a bankruptcy.

Can I be denied a student loan on account of bankruptcy?

The Bankruptcy Code strictly prohibits denial of a government loan because you have previously filed for bankruptcy.

Can a utility (electrical, telephone, etc.) cut off or refuse service because of bankruptcy?

No. The utility can, however, require a new deposit as "adequate assurance" that you will pay for utility services used after your filing of a bankruptcy case. That deposit should be made within 20 days of your case filing.

Will the Trustee come to my house?

Generally, No. Generally, no one will come to your home to examine your personal belongings, unless there is a suspicion that you have hidden assets or undervalued what you own. Such a home visit is extremely rare.

Will I have to give up all my property?

No. The Bankruptcy Code provides that a debtor filing for bankruptcy can exempt certain property from the Trustee's right to sell property and distribute the sales proceeds to the creditors in the case. The vast majority of bankruptcy cases are "no asset" cases, meaning that there are no non-exempt assets which the Trustee can sell.

Will bankruptcy stop wage garnishments?

Yes. As soon as your case is filed, creditors must stop whatever collection efforts are underway, including garnishment. The only exception may be for ongoing child or family support ordered by a court, which will not be discharged by your bankruptcy. The discharge of that debt will forever eliminate a creditor's right to garnish your wages on account of that debt.

Can I get credit after bankruptcy?

Generally, yes. Filing bankruptcy does not prevent you from getting new credit; an entire class of lenders target bankruptcy debtors as customers. Immediately after a bankruptcy filing, however, you can expect credit to be more difficult to get, more expensive, and more limited in amount. By two years after a bankruptcy discharge, many debtors are eligible for mortgage loans on terms just as good as those with the same financial characteristics who have not filed bankruptcy. That is, by two years after completion of your bankruptcy, the size of your down payment and the stability of your income will be much more important than the fact you filed bankruptcy in the past. While the fact that you filed bankruptcy stays on your credit report for up to 10 years, it becomes less significant the further in the past the bankruptcy is. In fact, you are probably a better credit risk after bankruptcy than before.

What if I can't make the payments on my Chapter 13 plan?

Chapter 13 plans are voluntary and you can dismiss them freely. You also have the right to convert your Chapter 13 case to Chapter 7 if you meet certain qualifications. Also, if you have a temporary interruption in income or an unexpected increase in your expenses, you can ask the court to modify your plan to reduce the payments, or to suspend the payments for a couple of months. If you miss the payments and don't take action to modify your plan or convert your case to Chapter 7, the court will dismiss your case.

Does a previous bankruptcy prevent me from filing again?

It depends on what type of bankruptcy you want to file now, and what type of bankruptcy you filed before. Generally, you can file a Chapter 7 case if your previous Chapter 7 case was filed more than 8 years ago. In most situations, the fact of a prior Chapter 7 case will not preclude you from filing a Chapter 13. In all other situations involving prior bankruptcies, the rules are technically complex and are best addressed during an initial consultation with our experienced bankruptcy attorneys.

Bankruptcy Information