Bankruptcy FAQ's
Can I refinance or sell my home? When can I purchase a new home? - While in Chapter 7 - Bankruptcy or Chapter 13 - Debt Consolidation you must obtain court permission to sell or refinance. After discharge, you may immediately assume a sellers loan or, after two (2) years, qualify for a new home loan with some re-established credit.
Can I stop my home foreclosure? - Because your home is a secured debt, Chapter 7 - Bankruptcy can only temporarily stop
foreclosure until your case is discharged or your creditor lifts the "automatic stay". Chapter 13 - Debt Consolidation completely stops foreclosure if back payments are kept current in the payment plan and regular payments are kept current after filing.
Does Bankruptcy eliminate all debts? - No, Chapter 7 - Bankruptcy will eliminate most all unsecured debts but not secured
debts such as your home or car. To retain secured assets, payments must be made or modified. In Chapter 13 - Debt Consolidation you pay all or only a portion of your debts.
Do I have to list all my creditors? - You must list all creditors at filing except creditors with zero balance. Chapter 7 - Bankruptcy allows you to pay a desired creditor directly if you choose through reaffirmation. Chapter 13 - Debt consolidation has restrictions on who you pay, how much, and when.
Can I stop my home foreclosure? - Because your home is a secured debt, Chapter 7 - Bankruptcy can only temporarily stop
foreclosure until your case is discharged or your creditor lifts the "automatic stay". Chapter 13 - Debt Consolidation completely stops foreclosure if back payments are kept current in the payment plan and regular payments are kept current after filing.
Does Bankruptcy eliminate all debts? - No, Chapter 7 - Bankruptcy will eliminate most all unsecured debts but not secured
debts such as your home or car. To retain secured assets, payments must be made or modified. In Chapter 13 - Debt Consolidation you pay all or only a portion of your debts.
Do I have to list all my creditors? - You must list all creditors at filing except creditors with zero balance. Chapter 7 - Bankruptcy allows you to pay a desired creditor directly if you choose through reaffirmation. Chapter 13 - Debt consolidation has restrictions on who you pay, how much, and when.
Can you remove a lien? - If the lien was not incurred to purchase the asset, was not consensual, and impairs an exemption, it may be removed by lien avoidance techniques.
Why try to payback creditors in Chapter 13, why not just file Chapter 7? - If mandated by the "Means Test" or If there is enough money left over after monthly living expenses the court may require full or partial payment to your creditors in Chapter 13 - Debt Consolidation.
Can my co-signor be protected? - All consumer co-signors are protected under Chapter 13 - Debt Consolidation but not
under Chapter 7 - Bankruptcy.
Will my employer be notified? - No, unless you owe your employer money or stop making timely Chapter 13 - Debt
Consolidation payments.
Why try to payback creditors in Chapter 13, why not just file Chapter 7? - If mandated by the "Means Test" or If there is enough money left over after monthly living expenses the court may require full or partial payment to your creditors in Chapter 13 - Debt Consolidation.
Can my co-signor be protected? - All consumer co-signors are protected under Chapter 13 - Debt Consolidation but not
under Chapter 7 - Bankruptcy.
Will my employer be notified? - No, unless you owe your employer money or stop making timely Chapter 13 - Debt
Consolidation payments.
Will my bank account be affected? - If your bank or credit union is an unsecured creditor, close your account and move
to a bank where you owe nothing. Otherwise, at time of filing, your bank could offset or freeze your account.
Does Chapter 7 or 13 stop lawsuits and judgments? - Yes, immediately when we file your case.
Can I get out of a contract? - Both Chapter 7 - Bankruptcy and Chapter 13 - Debt Consolidation may cancel unwanted
contracts if you discontinue the service and/or return the merchandise.
Can I stop wage garnishment? - Yes, most creditors stop garnishing wages when your case is filed. This doesn't apply
to current child support payments.
to a bank where you owe nothing. Otherwise, at time of filing, your bank could offset or freeze your account.
Does Chapter 7 or 13 stop lawsuits and judgments? - Yes, immediately when we file your case.
Can I get out of a contract? - Both Chapter 7 - Bankruptcy and Chapter 13 - Debt Consolidation may cancel unwanted
contracts if you discontinue the service and/or return the merchandise.
Can I stop wage garnishment? - Yes, most creditors stop garnishing wages when your case is filed. This doesn't apply
to current child support payments.
Can you stop auto repossession? - Yes, immediately upon filing.
Can I use credit while in Chapter 7 or 13? - No, not until you receive a discharge. In Chapter 13 - Debt Consolidation you must get court permission to incur debt over $250, except in emergencies.
Will I have to go to court? - Generally only one trustee hearing appearance is required 30 to 45 days after filing. This is normally a short hearing. Your creditors may be present to ask questions.
How long will I be in Chapter 7 or 13? - Chapter 7 - Bankruptcy takes about 5 months, although your dischargeable debts are gone the day we file your case. Chapter 13 - Debt Consolidation takes 3 to 5 years to repay debts unless you decide to pay faster.
Can I use credit while in Chapter 7 or 13? - No, not until you receive a discharge. In Chapter 13 - Debt Consolidation you must get court permission to incur debt over $250, except in emergencies.
Will I have to go to court? - Generally only one trustee hearing appearance is required 30 to 45 days after filing. This is normally a short hearing. Your creditors may be present to ask questions.
How long will I be in Chapter 7 or 13? - Chapter 7 - Bankruptcy takes about 5 months, although your dischargeable debts are gone the day we file your case. Chapter 13 - Debt Consolidation takes 3 to 5 years to repay debts unless you decide to pay faster.
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Copyright © 2010 Upland Law Group. All rights reserved
The information in this web site is provided with the understanding that the publisher is not engaged in rendering legal, tax or investment advice. Consult an attorney for legal advice. While every attempt has been made to provide current and accurate information, neither the author nor the publisher can be held accountable for any errors or omissions. You agree not to hold rancholawgroup.com liable for action you take from the information on its website.
818 North Mountain Ave. Suite 219 - Upland, CA 91786 | Phone: (909) 919-7201 | Fax: (866) 919-4325
Copyright © 2010 Upland Law Group. All rights reserved
The information in this web site is provided with the understanding that the publisher is not engaged in rendering legal, tax or investment advice. Consult an attorney for legal advice. While every attempt has been made to provide current and accurate information, neither the author nor the publisher can be held accountable for any errors or omissions. You agree not to hold rancholawgroup.com liable for action you take from the information on its website.