Frequently Asked Questions

  • What is chapter 7 Bankruptcy fresh start Bankruptcy?“Fresh Start” bankruptcy, chapter 7 allows a person to eliminate most or all of his debt while being allowed to keep whatever property he may have. Allows unsecured debt such as medical bills, personal loans and most credit card charges to be easily eliminated. In many cases, a person may keep their home or car (secured debt), provided that they continue to make current payments and are up to date on the loan.

  • Must I appear before a Chapter 7 Bankruptcy Trustee to be examined under oath?Yes. If you fail to appear, your case will be dismissed.  At your appearance, you want to be truthful, yet you do not want to expound upon answers if they can be simply answered with a yes or a no.  The trustee’s job is to determine whether or not there are any nonexempt assets that could be administered for the benefit of creditors.  In 99% of Chapter 7 bankruptcy cases, there are no assets available for the unsecured creditors.

  • When would someone want to file Chapter 13 bankruptcy?Chapter 13 is a form of bankruptcy protection whereby a person reorganizes his debt, by paying through a Chapter 13 Trustee all of his disposable income over a three to five year period of time. In many cases, creditors will receive less than a 100% repayment on their debt. To qualify for Chapter 13 bankruptcy, you first must be an individual. Further, you must have monthly income which exceeds your monthly expenses in order to fund a plan.

  • What is the number one reason to file a Chapter 13 bankruptcy?It is to save a home that’s in foreclosureChapter 13 will allow you to repay the mortgage arrearage, the part that you fell behind, over the next 3 to 5 years while being allowed to make your regular mortgage payment on time once again. What happens in many situations is someone will fall behind on their home and they won’t have the ability to catch up with one lump sum payment. However, by filing Chapter 13, the homeowner can dictate to the mortgage company how the mortgage arrearages are going to be paid back over a lengthy period of time.