Filing bankruptcy comes with a lot of questions. These are some of the common questions we are asked most frequently.
To get specific answers to your questions, please contact our office for a free consultation.
FAQ’s
Why should I hire an attorney?
Bankruptcy is a complex process especially after the change in bankruptcy laws that became effective in late 2005. An experienced bankruptcy attorney will be able to properly prepare your court documents, ensuring your assets are fully protected and will also appear with you at your Meeting of Creditors.
Can I hire a paralegal?
Yes, however paralegals are not attorneys. A paralegal is able to prepare court documents but cannot give out legal advice or provide representation in court. Will bankruptcy stop my foreclosure? Yes, bankruptcy can stop the foreclosure if you are able to resume payments and slowly catch up the arrears over the next few years.
Does bankruptcy ruin my credit?
Unfortunately, by the time you have filed a bankruptcy, your credit may already be ruined. However, a bankruptcy clears your old debts putting you in a position to be able to pay current bills. There are ways to rebuild your credit after a bankruptcy and even get financed for a home within 3 to 5 years. Being proactive through research will better help you get started on rebuilding credit. It is important to understand that the bankruptcy court and our office are not associated with credit reporting agencies and it is up to you to rebuild your credit. A bankruptcy will stay on your credit report for up to 10 years. At the end of your bankruptcy we offer our clients basic advice on how to rebuild their credit.
Will I have to go to court?
In most bankruptcy cases, you have to appear for an examination of your assets and financial information, known as the Meeting of Creditors. This meeting is usually via Tele/Videoconference, such as Zoom or other video service.
At this meeting, the Bankruptcy Trustee will verify your identity (valid California picture identification and proof of your social security number are required). Additionally, the Bankruptcy Trustee will ask you questions about your assets as listed in the Bankruptcy petition. Your creditors (if any are present) may ask questions as well. In some instances, the Bankruptcy Trustee or the Bankruptcy court may require additional information or documents.
What types of debt are not dischargeable?
The following types of debts are not dischargeable: any court or traffic fines, monies owed due to negligence and/or fraud, child support, alimony, student loans, certain types of taxes, debts not listed in your bankruptcy and any loans and/or credit cards obtained with false information. What is the difference between a Discharge and a Dismissal in bankruptcy? A discharge indicates the bankruptcy case filed was completed and the case is concluded. Your debts are erased at discharge. A dismissal indicates that a bankruptcy case was not completed; several factors can contribute to a case being dismissed.
Can I keep my property?
Typically most personal property can be protected in bankruptcy. You will need to provide information about all of your assets to your bankruptcy attorney. Your property cannot be protected unless it is disclosed.
Can I keep my house?
You can usually protect your home in bankruptcy. It is essential to determine the current market value and know the current balances of all liens recorded against your home. This information will help determine which chapter will best suit you. You will need to continue to make monthly mortgage payments in order to keep your home; however, a bankruptcy can remove junior loans (i.e. 2nd and 3rd mortgages) and can be beneficial to help you qualify for a loan modification.
If I am married do I have to file with my spouse?
No, you may file an individual bankruptcy. It is important to understand the individual who files the bankruptcy will have relief from the debts listed. However, any debts jointly held with your spouse will leave the non-filing spouse liable on those debts. When will my creditors stop calling me? Once they receive notice of the bankruptcy filing creditors must stop contacting you. Upon retaining our office, we advise our clients to inform creditors that they have retained a bankruptcy attorney and provide them with our contact information. At that point creditors will typically contact our office for a case status update.
What are the fees?
Our fees vary depending on the complexity of the case. A fee quote is provided at your consultation. Attorney fees and courts costs can be split into payments. However, please be advised all fees must be paid prior to filing.
Can I keep a credit card?
Legally you have to list all debts in your bankruptcy. It is up to the credit card company whether they wish to keep you as a customer and continue to extend you credit. What if I forget a creditor in my bankruptcy? If you realize you forgot to list a creditor after the bankruptcy is filed, the court and our office will charge a filing fee for any amendments. Once your case is closed, the court’s fees increase considerably as your case has to be reopened.
Is there another option besides filing bankruptcy?
We have been successful in settling accounts for many clients over the years. Generally, settlement candidates need funds available to pay a one-time lump sum settlement plus attorney’s fees, but sometimes other payment arrangements can be made. Please call our office to discuss settlement options.