Bankruptcy Attorneys

 Bankruptcy Questions and Answers

Q.        Do I really need an attorney to file for bankruptcy?

A.         Attorneys do much more than complete and file a bankruptcy petition. Attorneys attend the 341(a) Meeting of Creditors which is presided over by the Bankruptcy Trustee, negotiate with creditors, and provide legal advice.  Paralegals can only complete the forms based upon the information provided by the petitioner.  Paralegals cannot provide legal advice and certainly cannot represent the petitioner in the Bankruptcy Court.

            If you are confident that you need no legal advice and can represent yourself in dealing with the Bankruptcy Trustee and creditors, you can represent yourself without an attorney.  We do not recommend it.  Bankruptcy law is complex. If you make a mistake, it can cost you money.

Q.        Will I be required to go to court?

A.         You will always be required to attend a 341(a) Meeting of Creditors.  With a Chapter 13 Bankruptcy, you will be required to attend a Confirmation Hearing.  In addition, if not all questions are answered to the full satisfaction of the Bankruptcy Trustee, or he or she requests additional documentation or information, you may be required to attend one or more additional hearings.

Q.        What happens if my Bankruptcy Petition is not accurate?

A.         If it is discovered that an inaccurate Petition has been filed with the Bankruptcy Court, it must be amended immediately.

            The FBI investigates bankruptcy fraud.  You do not want the Bankruptcy Court or FBI to bring any inaccuracies to your attention.

Q.        Can I keep a credit card?

A.         It cannot be guaranteed.  However, sometimes it is possible to negotiate the retention of one or more credit cards.

Q.        Will you be able to stop creditors from calling my home and business?

A.         Absolutely.

Q.        Is it really possible for a creditor to seize up to 25% of my take home pay?

A.         Yes.  That is why debtors should investigate the option of bankruptcy.

Q.        Will my spouse be affected by my bankruptcy?

A.         Your spouse will be affected if he or she signed a contract for one or more of your debts or if you contracted on behalf of the community.  This is a complex area of the law.

Q.        Can my employment be terminated because I filed for bankruptcy?

A.         No.  Federal law makes it unlawful to terminate the employment of an employee or to discriminate in hiring a person because a person has sought protection under the Federal Bankruptcy Act. 

Q.        Can I keep my bankruptcy confidential?

A.         Bankruptcy filings are public records and all creditors will be notified of the filing.  Notwithstanding, most people will not be aware of a filing unless they do a public record search which is unlikely.  Credit bureaus will record the information for ten years.  Petitioners will also receive some mail with a return address indicating it is from the U.S. Bankruptcy Court or Bankruptcy Trustee.

Q.        How do I know whether I should file for bankruptcy?

A.         A consultation with a bankruptcy attorney is the best way to determine if you have other alternatives.  However, if your credit card debt exceeds 30% of your gross annual income, you are probably a candidate for bankruptcy.

Q.        Will using a credit counselor save me money and avoid a bankruptcy filing? 

A.         Most people are not aware of the fact that most credit counselors are owned or backed by the credit card and banking industries.  They exist to discourage people who should extinguish their debts in bankruptcy from doing so.  The result is that credit card companies and banks end up getting paid more than they would otherwise receive and the debtor is delayed in getting a fresh start.  A bankruptcy attorney can advise you on whether a credit counselor can assist you or whether you are better off extinguishing your debts in bankruptcy.

Q.        Does bankruptcy eliminate all debts?

A.         There are some debts that are not dischargeable through bankruptcy.  These include back child support, back spousal support, most taxes and court judgments resulting from fraud.  Contact us to discuss this subject as it is complex.  Most importantly, credit card debts, medical debts, installment debts, real estate loans and most court judgments are dischargeable with few exceptions.