Frequently Asked Questions

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Below are samples of various questions I regularly receive requesting general guidance.  (From www.lawyers.com)
 
Q: What's bankruptcy?
  • A:  Bankruptcy allows individuals or businesses (debtors) who owe others (creditors) more money than they're able to pay to either work out a plan to repay the money over time or completely eliminate (discharge) most of the bills.
Q: Who can file bankruptcy?
  • A:  With few exceptions, any person or business owing money to a creditor can file a bankruptcy petition.
Q: How often can you file for bankruptcy?
  • A: Filing bankruptcy can adversely affect your ability to obtain future credit, rent housing and even negatively impact a job application. Any decision to file must be carefully considered.
    • Chapter 7 - can be filed every 8 years from a previous Chapter 7 filing, or 6 years from a prior Chapter 13 filing.
    • Chapter 13 - can be filed 4 years from a prior Chapter 7 filing, or 2 years from a prior Chapter 13 filing.
Q: Which bankruptcy chapter should I file?
  • A:  Consumers typically file Chapter 7 where debts are dismissed, or Chapter 13, where repayment is made to creditors. Each chapter of bankruptcy spells out:
    • What bills can be eliminated
    • How long payments can be stretched out
    • What possessions you can keep
    • Additional information
The type depends on your circumstances and if you have assets available to repay all or part of the your debts. Bankruptcy laws can be tricky and involved, so determining if, when and which type of bankruptcy you need should be made with careful thought or the counsel of a bankruptcy attorney.

Q: What can I keep, if anything, if I file bankruptcy?
  • A:  Exemptions allow an individual to "exempt", or keep, certain kinds of property. State law defines what assets are considered "exempt," but typically include:
    • Jewelry
    • Vehicles up to a certain amount
    • Equity in a home up to a certain amount
    • "Tools of the trade" or tools and equipment necessary to allow the individual to continue working

Q: Will I lose my home if I file for bankruptcy?
  • A: There are many factors that impact the ability to keep your home, including:
    • The state you're in and the exemptions allowed
    • The status of your loan (current or in foreclosure)
    • The type of bankruptcy you're filing 
Q: How long does a bankruptcy stay on my record?
  • A:  Bankruptcies remain on credit reports anywhere from 7 up to 10 years.

Q: Can a creditor continue to contact me after I've filed for bankruptcy?
  • A:  During the time you are working out a plan or the trustee is gathering and preparing your assets to sell, creditors are required by law to stop all collection efforts against you. As soon as the bankruptcy petition is stamped "Relief Ordered" upon filing, you're immediately protected from your creditors. 

Q: When should I stop using my credit cards if I'm planning on filing for bankruptcy?
  • As soon as you anticipate filing bankruptcy, stop using your credit cards. Bankruptcy law allows the review of questionable purchases for potential fraud. If purchases are made within 40 days prior to filing, or cash advances taken within 20 days of filing, this debt may possibly be excluded from your bankruptcy and your case could be dismissed.
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Please contact me to discuss your questions and issues at (347) 464-8277 or tony@amvasslaw.com.
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