FAQ
1. Who may file for chapter 7 and chapter 13 bankruptcy?
Any individual, small business or corporation can file for Chapter 7 relief. Only individuals can file for Chapter 13 relief (although you may operate a business while in Chapter 13).
2. Why do people file bankruptcy?
Many people suffer job losses, health issues and/or have incurred too much debt for them to handle. There are many reasons people file for bankruptcy, and this is not an exhaustive list.
3. What happens to my property while I am in bankruptcy?
In most instances, debtors can hold onto their personal property, real property and bank accounts. Before filing it would be wise for you to consult with us regarding your assets.
4. What will happen to my pension in bankruptcy?
Most pensions are not considered part of the bankruptcy estate and are therefore not subject to the Bankruptcy Court’s control. Please be careful and consult with us first regarding your particular type of pension.
5. What documentation do I need to provide to the court?
Generally, your four most recent pay stubs, your most recently filed tax return and bank statements covering the date you filed. For identification purposes the Court will also ask for a government-issued photo ID and evidence of your social security number.
6. How does bankruptcy affect my mortgage?
If you are current on your mortgage(s) and there is no equity in your property, the Court generally will not disturb your property. You may be called to reaffirm your mortgage(s).
7. How long does the bankruptcy process take?
For Chapter 7, from the date of filing to discharge it normally takes 4 months. A Chapter 13 plan usually runs from 36 to 60 months.
8. Do I need to file my tax returns before I file bankruptcy?
The Court requires that you furnish a copy of the tax return for the most recent tax year ending before the petition was filed.
9. Can I modify my auto loan or mortgage?
In certain instances Chapter 13 allows for the modification of auto and mortgage notes.
10. Will I have to go to court after I file?
Debtors are required to attend one “meeting of creditors”. In Chapter 13 cases debtors may have to attend a confirmation hearing before the Judge.
11. What happens if I do not comply with court orders or do what the court requires I do?
The Court can dismiss your case for failure to prosecute. In certain circumstances you may face additional penalties such as a loss of ability to file after dismissal for a stated period of time.
12. Is everything i tell your office held confidential?
The Federal Court system (which includes the bankruptcy court) recognizes attorney-client privilege. Thus, everything you tell us in the scope of the attorney-client relationship is most often held confidential, with few limited exceptions.
13. Will i have to complete any courses in conjunction with my bankruptcy filing?
Before filing debtors are required to complete a credit counseling briefing session, which may be done either online or over the telephone. After the 341(a) meeting of creditors debtors must also complete a debtor education briefing, once again either online or by telephone. If you file without having completed the credit counseling briefing your case will be dismissed. If you fail to complete the debtor education briefing prior to your case being closed, you will not receive your discharge.
