Q: Can I keep my house, car, and belongings with Chapter 7?

A: As long as there is no substantial equity is your house or car, and you are current on payments, you may keep them. You also may keep any of your belongings.

Q: What won't be eliminated with Chapter 7?

A: Student loans, alimony, government debts, child support, tickets, some IRS debts and fraudulent debts.

Q: Why would someone file Chapter 13 bankruptcy?

A: To stop foreclosure, keep your car, save your business, for debt consolidation, help with student loans, and help with IRS debts.

Q: Can I eliminate or reduce IRS Debt in a Chapter 13?

A: Yes. Most penalties will be removed and interest wills top accruing. Some debts more than 3 years old can even be eliminated.

Q: Why file instead of working with a debt consolidation group?

A: Unlike debt consolidation groups, when you file for bankruptcy you are protected by the bankruptcy courts.

Q: How long does Chapter 13 last?

A: Anywhere from 3-5 years. What you pay to creditors is a percentage based on the amount of debt you have, your budget, and equity. We can give you more information after we review your finances.

Q: Can you stop foreclosure with a Chapter 13?

A: Yes. Your past due amount will be eliminated and you will only owe future payments.

Q: Can I get off the boot list and get my license back by filing?

A: Yes. All you will need to do afterwards is file a petition with the court.

Q: Am I responsible for my mortgage and car payments with Chapter 13?

A: For your mortgage, yes, but back payments owed will be erased. For your car, it will likely be paid through the Chapter 13 but at a lower interest rate. Additionally, we can reduce the balance of your loan to the fair market value of the car if it was purchased 910 days prior to filing.

Q: Can I stop repossession?

A: Repossession actions can be stopped. If your car has already been taken but it has been less than 21 days, we can get the car returned to you. With Chapter 7 you will need to catch up on any past due balances or make new payment arrangements with the company. It usually takes 3-4 months for the discharge.

Q: Can I stop garnishment action by filing a bankruptcy?

A: Yes, it will stop immediately once you file.

Q: Can I stop payday loan bank account deductions?

A: Yes, as soon as you file with the court, and sometimes even prior.

Q: What is the credit counseling requirement?

A: Two courses are now required by the court. The first must be done prior to filing and the second prior to discharge.

Q: Can I keep my credit cards?

A: Typically no. Some creditors may let you if you reaffirm the debt and make payments once your bankruptcy is discharged.

Q: How will bankruptcy affect my credit score?

A: After the bankruptcy is discharged you should be able to get credit once again, however your interest rates may be higher. You should be able to obtain credit cards, car loans, and personal loans. Some applicants can even buy homes within 1-2 years.

Q: How long does bankruptcy stay on my credit report?

A: 7-10 years after discharge. However, past bankruptcies are preferred to many creditors over multiple and continued missed payments.

Q: How long will it take me to have good credit again?

A: If you take proper care of your credit once your bankruptcy has been discharged, you can get your credit score above 700 within 3 years.