Welcome to the Frequently Asked Questions (FAQ page). I have tried to answer the most common questions visitors to this web site may have.
Question: How do I know if I'm in financial trouble?
Response: You are probably in trouble if you can’t pay your rent or mortgage on time; if you are over your credit limit; if you can’t make monthly installment payments; if you are using credit as a paycheck advance; if you have little savings; if your car has been or is about to be repossessed or if your home is in foreclosure.
Question: How will my credit be affected if I file for bankruptcy?
Response: A bankruptcy will show on your credit report for up to ten years after you file for bankruptcy. However, after an individual receives a discharge, it is possible to start building good credit almost immediately with the use of a secured credit card.
Question: What will it cost to file a bankruptcy?
Response: There are two costs: bankruptcy court filing fees and attorney fees. Filing fees are the fees charge by the bankruptcy court. The filing fees for each Chapter are different. Attorney fees also vary. Chapter 7 bankruptcies are charged at a flat fee for basic services. Chapter 11 and 13 bankruptcies are charged at a hourly rate for services rendered.
Question: Who is eligible for Chapter 13?
Response: Any individual who earns or receives money on a regular basis, who has debts below certain limits and who can show they have income over and above their reasonable living expenses.
Question: What if I want to keep my property?
Response: In Chapter 7, some property is exempt while other property can be saved with proper pre-bankruptcy planning. In Chapter 13, you may get to keep everything with the right plan.
Question: Why try to pay creditors in Chapter 13 instead of just discharging the debt in Chapter 7?
Response: Some individuals qualify for Chapter 7, but choose to file Chapter 13 as Chapter 13 solves problems like saving a home in foreclosure or paying back taxes. Some types of debts are not affected by Chapter 7, but may be eliminated by Chapter 13. Some people simply believe that it is important to try to repay their creditors.