Filing for bankruptcy can save you a lot of money, can stop pending collection actions, and can wipe out or reduce some of your debts. But the process is complex, and before you make a final decision on whether filing is right for you, it is a good idea to have some general background knowledge. Talking with an experienced bankruptcy attorney is helpful, and having a list of questions or concerns will help you to better understand how the system works and what you can expect when your case is filed.
Some of the most common bankruptcy FAQ’s include:
• What is the difference between a Chapter 7 and a Chapter 13? The difference is that in a 7 you are allowed to eliminate all of your unsecured credit card debt while in a Chapter 13 you will be required to pay back at least a small portion of this type of debt. Another major difference between the two is the time it takes to complete a case, and how much you will have to pay if you want to keep your car.
• What is the automatic stay and how does it help me? The automatic stay is a legal mechanism, put in place the instant your case is filed, that makes it unlawful for your lenders to contact you about debts that are owed. It is also against the law for a lender to sue you for a past due debt when the automatic stay is in place, or to continue garnishing wages or bank accounts.
• What is the discharge? The discharge is the official entry by the Court that your debts are no longer due. A debt that has been discharged is not one that a creditor can try to collect, and if they try to do so you can hold them accountable for violating the discharge order.
• Who decides what chapter of case I am eligible to file? When your paperwork is prepared part of those documents include completion of a means test calculation.
Your disposable income is compared to your secured debt load, and depending on the result you will be eligible to file either a Chapter 7 or a Chapter 13. The test is a difficult one to perform, but when you let a qualified bankruptcy attorney take on your case you can rest easy knowing it will be done correctly.
We know you have a lot of questions, and we have the answers you need. For help getting your money troubles under control, consider bankruptcy and let us handle the case for you.
For more information about how to manage debt, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that work for you.