Bankruptcy FAQ

What kind of Bankruptcy protection is available to individuals?

There are generally 4 types of bankruptcy filings, but you may not be qualified to file for each type. Generally, Chapter 7 Bankruptcies are liquidations; Chapter 13 Bankruptcies are filed to help you reorganize your debts, and make payments to a trustee who will then pay your creditors. Chapter 11 and 12 Bankruptcies are not generally for individuals, but for businesses. We can help you decide what type of bankruptcy filing is best for you.

Will I qualify for Bankruptcy protection?

You may qualify to file either a Chapter 7 or 13 Bankruptcy. Each type of bankruptcy has unique advantages and disadvantages. In particular, Chapter 13 requires you to have a source of income; Chapter 7 does not have such a requirement. We can help you choose which chapter serves your needs the best.

Can I file Bankruptcy with my spouse?

There may be advantages or disadvantages to a joint filing with your spouse. We can help you decide based on the type of debts and the assets you need to protect.

Can a Bankruptcy filing stop creditors from suing me or calling on the telephone?

Once a bankruptcy is filed, creditors are generally stopped from pursuing collection activities, including telephone calls and filing or continuing law suits to collect their debt. Garnishments and foreclosures can be stopped.

If I file Bankruptcy, can I keep my house or my automobile?

The law is very complicated and your circumstances will require careful examination. Whether you will be able to keep your property is a question that can only be answered by an experienced lawyer reviewing the facts of your particular situation, including the amount of equity (ownership interest) in your property, your payment record, and other important factors.

How do different types of debt affect a Bankruptcy filing?

Different kinds of debt may affect a Bankruptcy filing in different ways. We analyze your debts, and use this information to decide what type of bankruptcy filing is best for you. These debts may be classified as individual or joint, and can be dischargeable or nondischargeable (which means that they can be resolved by the Bankruptcy filing, or remain after the Bankruptcy is over). This determination is very important. You should consult with a lawyer to determine the classification and dischargeability of your debts.

Can I file for Bankruptcy protection if I own a business?

Yes, but it depends on how the business is owned, the value of your business, and other factors including what you intend to do with the business. The business itself may require bankruptcy protection; if you are a sole proprietor, or have guaranteed your business' debts, you may require bankruptcy protection for yourself, as well.

Will I still owe taxes after filing Bankruptcy?

This is one of the least known advantages of filing for bankruptcy protection. Many people do not know that the bankruptcy laws do provide certain protection against federal and state tax obligations. It is possible to discharge some tax obligations, depending on a number of factors, including the type of tax owed, the age of tax obligation, and whether you filed a tax return. If this is one of your concerns, you need to see an experienced lawyer to determine whether your tax obligations can be discharged in bankruptcy.

How can I get more information?

If you think that you need help because your debts are more than you can handle, give our office a call or e-mail us. We will be glad to speak with you about your individual situation, and schedule an appointment to assist you. Click here to find out how to contact us.

The State Bar does not certify any lawyer as a specialist or expert. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.