Q. Will I lose my property in bankruptcy?
A. No. Most clients are allowed to keep virtually all of their property: home, vehicles, household goods, retirement accounts
Q. Won’t my credit be ruined for seven years after a bankruptcy?
A. No. Most clients can qualify for a low interest rate car loan 18 months after their Chapter 7 case is over. Three years after a bankruptcy most clients can qualify for a low interest rate home loan.
Q. Can I get credit cards after my bankruptcy?
A. Probably. But don’t do it! A debit card will do almost everything a credit card will do, except allow you to spend money you don’t have.
Q. Should I look into some form of debt consolidation?
A. By all means clients should at least consider debt consolidation as a possible alternative to a bankruptcy. This does not mean that a debt restructuring program is preferable to a bankruptcy. In the large majority of cases, people in financial difficulty are much better served by either a Chapter 7 or Chapter 13 proceeding. If some form of debt restructuring program does appear preferable to a bankruptcy, the attorney will advise the client of this fact at the initial consultation.
Q. What is the difference between Chapter 7 and Chapter 13?
A. There are substantial differences between the two types of cases. Even a brief overview of those differences is beyond the scope of this web page. As a down and dirty explanation, Chapter 7 is a quick, clean, (relatively) cheap and easy. About 80% of this office’s cases are filed as Chapter Sevens. Chapter 13 can be seen as a form of debt restructuring, although usually the worst Chapter 13 case (a 100% repayment plan) is better than the very best non-bankruptcy debt restructuring plan. Details of these differences and the pros and cons of each type of case are explained in the office visits.