Bankruptcy

What is Bankruptcy?

Bankruptcy is a legal proceeding in which people who cannot pay their bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at [...]

By |June 10th, 2019||0 Comments

What Can Bankruptcy Do for Me?

Bankruptcy may make it possible for you to: Eliminate the legal obligation to pay most or all of your debts. This is called a 'discharge' of debts. It is designed to give you a fresh financial start. Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed [...]

By |June 10th, 2019||0 Comments

What Bankruptcy Cannot Do

Bankruptcy, however, cannot cure every financial problem. Nor is it the right step for every individual. In bankruptcy, it is usually not possible to: Eliminate certain rights of 'secured' creditors. A 'secured' creditor has taken a mortgage or other lien on property as collateral for the loan. Common examples are car loans and home mortgages. [...]

By |June 10th, 2019||0 Comments

Chapter 7 (Straight Bankruptcy)

In a bankruptcy case under chapter 7, you file a petition asking the court to discharge your debts. The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property, except for 'exempt' property which the law allows you to keep. In most cases, all [...]

By |June 10th, 2019||0 Comments

Chapter 13 (Reorganization)

In a chapter 13 case you file a 'plan' showing how you will pay off some of your past-due and current debts over three to five years. The most important thing about a chapter 13 case is that it will allow you to keep valuable property - especially your home and car - which might [...]

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What Property Can I Keep?

In most cases you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt, you will be able to keep it, if you pay its non-exempt value to creditors in Chapter 13. However, some of [...]

By |June 10th, 2019||0 Comments

Will Bankruptcy Wipe Out All My Debts?

Yes, with some exceptions. Bankruptcy will not normally wipe out: money owed for child support or alimony, fines, and some taxes; loans you got by knowingly giving false information to a creditor, who reasonable relied on it in making you the loan; debts resulting from 'willful and malicious' harm; student loans owed to a school [...]

By |June 10th, 2019||0 Comments
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