Common Questions

1. Is a bankruptcy right for me?

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

3. What can I do to stop a pending foreclosure?

4. How can I stop a wage garnishment?

5. How can I stop creditors from harassing me?

6. Will I ever be able to rebuild my credit if I file bankruptcy?

7. What are your fees?

1. Is a bankruptcy right for me?

Maybe! This depends on your personal situation and set of facts. If you are overwhelmed by debt, facing a possible foreclosure or repossession or have a pending lawsuit or garnishment, a bankruptcy may very well provide you with some very needed relief and allow you an opportunity to get back on your feet. Whether you ultimately make the decision to file or not is personal, but it is worth speaking with an experienced bankruptcy attorney to discuss your situation, review your options and answer your questions about the process.

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

Chapter 7 and Chapter 13 bankruptcy are very different and offer clients with a variety of situations the opportunity to relieve themselves from mounting debts while protecting important assets. Chapter 7 is “straight bankruptcy” and allows people to discharge most, but not all, forms of debt while keeping specific, exempt assets, as determined by the Bankruptcy Code. Chapter 13 is a form of debt consolidation, allowing clients 3 to 5 years to restructure some or all of their debts and protect otherwise non-exempt assets. Which Chapter is right for you depends on your specific facts.

3. What can I do to stop a pending foreclosure?

In most circumstances a bankruptcy filing will stop, either temporarily or permanently, a pending foreclosure. Depending on the chapter filed and plan in place, the filing will either provide you temporary relief, giving you time to move your family and belongings on your own timeline, or it may allow you to catch up the arrears owed to the lender on a more manageable basis, giving you an opportunity to get current and stay in the home.

4. How can I stop a wage garnishment?

Filing a Chapter 7 or 13 bankruptcy will stop wage garnishments in most circumstances and allow you to either discharge the debt entirely or restructure the debt in a more manageable way according to your budget. If a bankrutpcy is not possible, alternatives may also be available that would stop the garnishment and give you some necessary relief.

5. How can I stop creditors from harassing me?

Under the Fair Debt Collection Practices Act, restrictions are placed on creditors and collection agencies regarding their collection methods and how they report to credit reporting agencies such as Equifax, Experian and TransUnion. If creditors are harassing you, you are not alone and may have recourse against them if their methods violate the law. Moreover, you may qualify for either a bankruptcy filing or other alternatives to bankruptcy that would put an end to the never-ending collection calls while resolving your debt.

6. Will I ever be able to rebuild my credit if I file bankruptcy?

Yes! A concern for many individuals considering bankruptcy is that they will not be able to get credit again or that it will be a minimum of 10 years post-filing before they can obtain new credit. Thankfully, neither of these scenarios is completely true.

It is true that obtaining traditional credit immediately post-filing is unlikely and a bankruptcy filing may reflect on your credit report for a period of 10 years post-filing. However, generally speaking, it takes our clients 2-3 years of credit rebuilding post-filing to begin qualifying for traditional credit again. And options for non-traditional credit, though typically not advisable, are often available almost immediately post-filing.

Generally speaking, individuals come out of bankruptcy having discharged most or all of their unsecured debt and are ineligible to file Chapter 7 again for 8 years. Therefore, assuming the individual is earning income and making wise financial decisions post-filing, often times creditors are willing to extend new credit. However, it is important that you evaluate any new offers for credit closely and ensure you do not over-use that credit so as to avoid future financial issues!

7. What are your fees?

Our fees are specific to each client and determined by what resolution we decide is best and the complexities of your particular situation. We understand that you are undergoing financial difficulties and work hard to ensure our fees are fair and competitive. However, we are unable to quote specific fees until we fully understand your situation, which is why we offer a free one-hour initial consultation. This gives us an opportunity to gather necessary facts, outline your best options and discuss the fees associated with those services.