Bankruptcy FAQ
- What is the purpose of bankruptcy?
- Who is the Bankruptcy Trustee?
- What is Chapter 7 Bankruptcy?
- What is Chapter 13 Bankruptcy?
- What is “unsecured priority debt”?
- What is “non-priority unsecured debt”?
- May I file bankruptcy alone, without my spouse filing along with me?
- May a self-employed person file bankruptcy under Chapter 7 or Chapter 13?
- What bankruptcy courses must I take?
- Will my friends find out about my bankruptcy?
- Must my employer be told I am filing bankruptcy?
- Will I lose my job if I file for bankruptcy?
- Do I lose any of my rights, such as the right to vote?
- How does filing bankruptcy affect my credit rating?
- Will I need to appear in Court if I file for bankruptcy?
- Can I transfer assets to a friend or relative for little or no value in return before I file for bankruptcy?
- What should I do if I am sued after bankruptcy on a debt that was discharged?
- Can I save my house by filing bankruptcy?
- My wages are being garnished. What will happen?
- Will I lose my 401(k) or retirement fund?
- Will bankruptcy hurt my chances of finding a house or apartment to rent?
- Isn’t filing for bankruptcy morally wrong?
FAQ (THE ANSWERS)
- What is the purpose of bankruptcy?
To give you a fresh start in life! - Who is the Bankruptcy Trustee?
The court appointed official who oversees the bankruptcy and is responsible for recovering assets that aren't "exempt" in order to make payments to the unsecured creditors. - What is Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy is designed for the low-income debtor who has “unsecured debt” he wants discharged (wiped out). Examples of unsecured debt: credit card debt, medical bills, payday loans, store debt, back rent, personal loans, telephone, gas, electric.
Unsecured Debt is debt which is not backed up by property such as a home or car. The home and car debt is called “secured debt” and is not protected in Chapter 7 Bankruptcy.
In Chapter 7 Bankruptcy the debtor might have to give up some “nonexempt” (non-essential) property such as a boat or expensive jewelry. This property is sold by the Trustee and the proceeds go to the unsecured creditors. But most cases are “no-asset” cases where the debtor gives up no property. - What is Chapter 13 Bankruptcy?
Chapter 13 Bankruptcy is for the steady earner who wants to keep all of her property, including her home and car. She gets the Court to approve a 3 to 5 year monthly Repayment Plan which allows her to pay living expenses and debt payments and still have something left to pay a portion of her unsecured debt. - What is “unsecured priority debt”?
This is unsecured debt which is not discharged in bankruptcy. Examples are child support and alimony. - What is “non-priority unsecured debt”?
This is the unsecured debt we have been discussing (credit cards, medical bills etc). It is unsecured and it doesn’t fall within the “priority” category. - May I file bankruptcy alone, without my spouse filing along with me?
A spouse can file bankruptcy alone without the other spouse or both spouses can file a single bankruptcy case together and that is called a joint bankruptcy case. - May a self-employed person file bankruptcy under Chapter 7 or Chapter 13?
Yes. - What courses must I take?
A Credit Counseling class before filing and a Personal Financial Management course after filing. These courses are about 90 minutes each, with the total for both around $100. The courses are available online or by telephone. - Will my friends find out about my bankruptcy?
Bankruptcy filings are public record, but they are filed away in the court house. - Must my employer be told I am filing bankruptcy?
Sometimes the employer is contacted for reasons connected to the bankruptcy. This is rare. In most cases your employer won’t have a clue. Your bankruptcy is noone’s business. - Will I lose my job if I file for bankruptcy?
No. Even if she finds out, it is illegal for your employer to fire you or discriminate against you. - Do I lose any of my rights, such as the right to vote, by filing bankruptcy?
No. You do not forfeit any of your civil or constitutional rights by filing bankruptcy. Why would you? The basis for your question is that you think you may be doing something WRONG. Stop thinking this way. Bankruptcy Law was established by Congress for U.S. citizens. - How does filing bankruptcy affect my credit rating?
The filing of bankruptcy will cause a drop in your credit rating. But I can show you how to re-build your credit. Call me on my cell. I am an attorney and I give advice on Bankruptcy and Foreclosures in Louisville, Kentucky and Southern Indiana. CALL ME ON MY CELL NOW. I WILL PERSONALLY PICK UP OR CALL YOU BACK WITHIN 20 MINUTES. TEST ME! 502.592.9771. - Will I need to appear in Court if I file for bankruptcy?
You will need to appear in Court for what is called the "Meeting of Creditors". The meeting will normally last for less than 30 minutes. And I’ll be there with you. - Can I transfer some or all of my assets to a friend or relative for little or no value in return before I file for bankruptcy?
No. This is fraud. - What should I do if I am sued after bankruptcy on a debt that was discharged?
You should get the case dismissed. - Can I save my house by filing bankruptcy?
Filing bankruptcy will stop the foreclosure for a while but in the long run you will have to make up your missed payments and then stay current with your mortgage payments.
- My wages are being garnished. What will happen?
The garnishment will stop after you file for bankruptcy . - Will I lose my 401(k) or retirement fund?
No. These are exempt. - Will bankruptcy hurt my chances of finding a house or apartment to rent?
Probably, assuming the landlord checks you out. (Lots of them don’t.) Try to find someone to co-sign your lease. - Isn’t filing for bankruptcy morally wrong?
Not in the least. Divorce, unemployment, terrible economy, anyone can get overextended.
Questions on bankruptcy? I can help. Call me on my cell now. I am an attorney and I give advice on Bankruptcy and Foreclosures in Louisville, Kentucky and Southern Indiana. CALL ME ON MY CELL NOW. I WILL PERSONALLY PICK UP OR CALL YOU BACK WITHIN 20 MINUTES. TEST ME! 502.592.9771.
