Frequently Asked Questions
Q: What is bankruptcy?
A: Bankruptcy is a process under federal law that allows
debtors who owe more money than they can pay to either eliminate their debts by filing a
Chapter 7 bankruptcy or work out a payment plan to pay a portion
(or all) of their debts over time by filing
a Chapter 13 bankruptcy.
Q: Will bankruptcy stop harassing phone calls and mail from bill collectors?
A: Yes! An "automatic stay" will take effect when you file your case. It will stop the
creditor harassment.
Q: Will bankruptcy stop a wage garnishment?
A: Yes. The automatic stay will stop the garnishment.
Q: What does "secured" or "unsecured" debt mean?
A: Secured debt is debt that allows a creditor to make a claim on an asset (i.e. home, real property or car).
Unsecured debt is held by creditors that have no claim to your assets (i.e. credit cards).
Q: What happens if I file and discover another debt after filing?
A: We can amend your case to include additional debts you may find after the case is filed.
Q: Can all debts be discharged in a bankruptcy?
A: No. There are debts like student loans, government loans, back taxes and other debts that cannot be
discharged or can be discharged but only under very limited circumstances.
Q: Am I going to lose my personal property if I file bankruptcy?
A: There are exemptions that allow you to keep a certain amount of personal property. Most of our clients
keep all of their property.
Q: Can I pick which debts to put in the bankruptcy?
A: No. You must include all of your debts.
Q: What is a bankruptcy discharge?
A: A bankruptcy discharge is the final court order which declares that you no longer owe the
dischargeable debts which you listed in your bankruptcy. A Chapter 7 bankruptcy discharge is received
60 days after the 341 meeting, or first meeting of creditors. In Chapter 13 bankruptcy, your discharge will be
sent to you once you have completed the payments under the Chapter 13 plan.