A: This is a difficult question to answer without sitting down for a consultation. Generally, Chapter 7 is a better way to deal with only unsecured debt, or when you simply want to walk away from everything and start over. Chapter 13 is more expensive -- you'll have to make plan payments for up to five years -- but Chapter 13 can allow you to save your home from foreclosure and protect your other existing assets.

A: Once you submit the required paperwork to the bankruptcy court, the court issues an automatic stay. This is like a restraining order against your creditors, and prevents them from contacting you to recover money, seize your property, or place liens on your home. We have seen the relief that clients experience when they are no longer bothered by creditors.

A: Many homeowners have seen a substantial decrease in the value of their home. As a result, they may have a first mortgage in which they owe more than the home is worth. Even though they owe more on the first mortgage, they also have payments owed on a second or a third mortgage. By filing Chapter 13, people may be able to get rid of their second or third mortgage payment or home equity line and never have to repay it.

A: Please obtain the contact information from the offending creditor, so that we may serve them with a formal demand to cease and desist from contact. If collection efforts continue despite the cease and desist demand, please document all dates and times of contact, as they may be utilized to sanction the offending creditor before the Bankruptcy Court?

A: Yes. Most of our clients receive pre-approved credit applications in the mail shortly after their bankruptcy is discharged. However, you will probably have to pay higher interest rates.

A: No. You have the right to represent yourself in your bankruptcy case. However, we don't recommend it. There are many pit falls which even inexperienced bankruptcy lawyers can fall into. Now that the law has changed, there are even more mistakes that can be made. Therefore, it is best to seek the advice and counsel of an experienced bankruptcy attorney who is qualified to guide you through the process.

A: Not everything can be discharged in bankruptcy. You may not be able to discharge student loans, back child support, and certain taxes. Debts such as these and others may need to be repaid. Our lawyers can tell you whether any of your debt is non-dischargeable.

A: This is a liquidating bankruptcy, formerly called “straight bankruptcy.” Its principal advantage is that you come out without any future personal obligations of your discharged debts.

A: Another type of proceeding in bankruptcy is a Chapter 11 reorganization. It is generally used by a business (however, individuals can also file chapter 11) or by individual debtors with substantial assets that would be lost in a straight bankruptcy. In a Chapter 11 proceeding the creditors are temporarily stopped from taking any action against the debtor while he tries to work out a plan of reorganization, in which he proposes a method of paying or settling his debts. The creditors vote on the plan, and it must also be approved by the court. This type of proceeding is designed to preserve an ongoing business which would otherwise be lost in a liquidation bankruptcy.

A: Chapter 13 is another type of bankruptcy proceeding. In Chapter 13 you must propose in good faith to pay back all or part of your debts from future income over a period of time. If the court approves the plan of payment and all of the payments are made, the debts are settled in this manner, even if your creditors are not willing to go along with the plan. If you make the payments as required, you will not have to surrender your property to a trustee and you can keep everything that you own. Chapter 13 can only be used by an individual and only if your debts do not exceed certain limits. An individual engaged in business may use a Chapter 13 proceeding to pay your debts or settle them over a period of time while you continue to own and operate your business. There are some situations in which Chapter 13 may be more advantageous than a liquidating bankruptcy under Chapter 7. Chapter 13 may allow you to discharge debt which you may not be able to discharge or get rid of under Chapter 7.