Bankruptcy Frequently Asked Questions

How much does it cost to file for bankruptcy?
Your initial consultation is free. During your consultation
the cost will be discussed with you. Payment plans are available.

Will filing for bankruptcy stop creditors from calling me?
Yes. Once your creditors are noticed that you have filed for bankruptcy
they will no longer contact you.

Is my spouse required to file with me?
Not necessarily. Your specific situation will help determine
if you should file individually or jointly. Your spouse is not required to file with you.

Do I qualify to file a Chapter 7 bankruptcy?
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made it more difficult, but not impossible for someone with above median income to qualify for a Chapter 7 bankruptcy. If you are above the median income for your household size, there is still a chance that you can qualify for a Chapter 7 bankruptcy. Congress devised a formula to determine eligibility that is called the "Means Test". In order to determine if you "pass" the means test, we must enter six months of household income, deductions from income, some expenses that are allowed under the means test, and secured and priority debts. Most people that are only slightly over median income and those with large amounts of secured debt will qualify for a Chapter 7 bankruptcy.

What is a secured debt?
A debt is "secured" if the creditor has the right to repossess or foreclose
on the property if the debt is not repaid. This is a security interest.
An example would be an auto loan where the creditor holds the title
and notates their debt on the title.

What is unsecured debt?
Credit card debt, medical bills and check advances where no collateral is pledged to receive services are unsecured.

Will filing for bankruptcy eliminate student loans and taxes?
No. Filing for bankruptcy will not eliminate your student loan or tax obligations.

Will I have to go to court?
Yes. You are required to attend your meeting of creditors hearing (341). You will receive a notice with the date, time and location of the meeting.

Will filing for bankruptcy stop a foreclosure?
Yes.Will I be able to keep my automobile(s) and house? Yes. In most situations arrangements can be made so that you can keep your car(s), house or mobile home.

Will filing for bankruptcy stop a wage garnishment?
Yes. When you file for bankruptcy all garnishments will be stopped.

Can I choose what to include in my bankruptcy?
No. All assets and liabilities must be included in your bankruptcy.

Will filing for bankruptcy eliminate child support or alimony responsibilities?

What is a Reaffirmation Agreement?
Even if a debt can be discharged, you may have reasons why you want to promise to pay it. For example, you may want to work out a plan with the bank to keep your house. To promise to pay that debt, you must sign and file a reaffirmation agreement with the court. Reaffirmation agreements are voluntary. They are not required by bankruptcy law or by any other law.

I may need to file bankruptcy, but I have a few more questions. What should I do next?
Contact our office at (601) 924-5961 to schedule an appointment.