Will I lose my home, car or other property if I file a Chapter 7?
It depends. A Chapter 7 is not for everyone. If you have too much equity in your home, car or other property, there is a possibility that the appointed trustee will want to sell that asset. In this situation, a Chapter 13 bankruptcy is a better choice. A Chapter 13 bankruptcy will allow you to keep your property and restructure your debt over a 3 to 5 year period.
Can income taxes be discharged in Chapter 7?
Yes, but there are strict requirements that must be met before income taxes are dischargeable.
Are student loans dischargeable?
In most cases, no. You must be able to meet the qualifications of an "undue hardship" in order for your student loan to be discharged. The law was changed in 1998 making it more difficult to have this type of debt discharged through the Chapter 7 process.
Do I need an attorney?
No. However, individuals who represent themselves are held to the same standard as attorneys. There are various filing requirements, exemption choices, and adversary possibilities that are best handled by an attorney practicing in the area of bankruptcy law.
What if I want to keep a credit card, do I have to include all my credit cards?
The law requires that ALL creditors be listed in your bankruptcy. You cannot pick and choose which bills you want to keep. If you need a credit card, our office will provide you with information regarding obtaining a secured credit card.
How will filing a bankruptcy effect my credit?
A bankruptcy notation will remain on your record report for up to ten years. However, most individuals thinking of filing a bankruptcy already have negative information on their credit report. Our office provides information regarding rebuilding credit, obtaining a secured credit card, obtaining mortgage financing, and dealing with the credit reporting agencies as part of its service to every client.
How much is this going to cost?
It depends on the complexity of you case. For a Chapter 7 individual case, our fees range form $700.00 to $1,200.00. For a Chapter 13 case, the fees range from $1,000.00 to $1,500.00. However, we do offer payment plans and discount programs to fit your budget.
In addition to the attorney fees, the cost of filing a Chapter 7 is $175.00. The cost of filing a Chapter 13 is $160.00.