Bankruptcy Questions


Answers to Bankruptcy Questions


Q:   What is bankruptcy?

A:   Bankruptcy allows debtors who owe more money than they can pay to either eliminate their debts or work out a payment plan to pay a portion or all of their debts over time.


Q:   Will bankruptcy stop all the harassing phone calls and mail?

A:   Yes! The automatic stay will take effect when you file your case. It will stop the creditor harassment.


Q:   Will bankruptcy stop a garnishment from a lawsuit for an unsecured debt?

A:   Yes. The automatic stay will stop the garnishment.


Q:   What type of bankruptcy should I file?

A:   The choice of a Chapter 7 bankruptcy or Chapter 13 bankruptcy depends on the type and amount of debts as well as the assets owned by the debtor.


Q:   Who can file bankruptcy?

A:   Generally, with a few exceptions, any person or business owing money to creditors.


Q:   How long will bankruptcy remain on my credit report?

A:   Bankruptcy can remain on your credit report for ten years.


Q:   What does “secured” or “unsecured” mean?

A:   Secured debt is debt that allows a creditor to make a claim on an asset (property of some kind). Unsecured debt is held by creditors that have no claim to a debtor’s assets.


Q:   What happens if I file and discover another debt after filing?

A:   Your attorney can amend your case to include additional debts.


Q:   What happens when one spouse files without the other spouse?

A:   You need to discuss this carefully with your attorney. The non-filing spouse may be responsible for some of the debts.


Q:   If I get divorced will I still be responsible for my ex-spouse’s debts?

A:   Yes


Q:   Can I be held responsible for a debt I co-signed?

A:   Yes


Q:   Can all debts be discharged?

A:   No. There are certain debts like student loans, government loans, and other debts that can not be discharged.


Q:   Will I lose my social security payments if I file?

A:   No


Q:   Am I going to lose my personal property if I file bankruptcy?

A:   There are exemptions, both state and federal, that allow you to keep a certain amount of personal property. Your attorney will explain these to you. You can also see the state exemptions here.


Q:   Can I pick which debts to put in the bankruptcy?

A:   No. You must include all of your debts.


Q:   Will I have to go before a judge?

A:   Contested matters generally require a hearing in which a judge presides. These hearings are far less common in Chapter 7 bankruptcies then in Chapter 13 bankruptcies.


Q:   When will I get my discharge?

A:   Generally a Chapter 7 bankruptcy discharge is received 60 days after the 341 meeting.


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