Question 1

What debts can I get rid of in Chapter 7 bankruptcy?

Accepted Answer

Common debts removed in Chapter 7 include credit card debts, medical debts, personal loans, payday loans, auto loans and mortgage loans. Debts that cannot be discharged include student loans, child support, most tax debt, divorce decrees, parking tickets and most government debt.

Question 2

Can I file Chapter 7 Bankruptcy?

Accepted Answer

Eligibility depends on three factors: previous bankruptcies filed in the last 2-8 years, your income vs. expenses, and the Means Test — a formula considering where you live, what you own, household size and income. Contact our firm for a free consultation to determine eligibility.

Question 3

Do I have to go to court for bankruptcy?

Accepted Answer

There is one meeting that a filer must attend, which usually doesn't last longer than 10 minutes. The Trustee will ask questions similar to what your attorney asks at your first consultation. Your attorney will be with you at the meeting.

Question 4

What is the automatic stay in bankruptcy?

Accepted Answer

The automatic stay immediately stops most creditors from collecting what is owed. It often stops lawsuits, wage assignments, wage garnishments, car repossession and prevents other service disruptions.

Question 5

Why would I choose Chapter 13 over Chapter 7 bankruptcy?

Accepted Answer

Chapter 13 gives you the opportunity to become current on a debt where the collateral would otherwise be lost. The most common example is stopping foreclosure and saving your home by paying back the amounts you are behind over a repayment plan.

Question 6

How long is a Chapter 13 repayment plan?

Accepted Answer

A Chapter 13 plan typically runs between 36 to 60 months. There can be exceptions where it can be shorter, but a plan can never be set for longer than 60 months.

Question 7

What is lien stripping in Chapter 13 bankruptcy?

Accepted Answer

If there is a second mortgage on a home and the first mortgage exceeds the home's value, it may be possible to 'strip' the second mortgage. The second mortgage is treated like an unsecured debt and at the end of the Chapter 13 plan it is discharged.

Question 8

What is a cram-down in Chapter 13 bankruptcy?

Accepted Answer

A cram-down allows certain assets to be paid for through Chapter 13 at the current value rather than the amount owed. This is most often possible on an automobile purchased over 2.5 years ago, and sometimes on secondary properties other than a primary residence.

Contact Us

Get in Touch

Service Area

Send Us a Message

Our Location