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📘 General Consumer Bankruptcy FAQs

1. What is consumer bankruptcy?

Consumer bankruptcy is a legal process that helps individuals eliminate or repay debt under the protection of the federal bankruptcy court.

2. What are the different types of bankruptcy for individuals?

The most common are Chapter 7 (liquidation) and Chapter 13 (reorganization). Chapter 7 erases most unsecured debt, while Chapter 13 involves a repayment plan over 3–5 years.

3. Will filing for bankruptcy stop creditor harassment?

Yes. An “automatic stay” goes into effect immediately after filing, which stops most collection actions, including lawsuits, wage garnishments, and harassing calls.

4. Can bankruptcy stop a foreclosure or repossession?

Yes. Filing for bankruptcy, especially Chapter 13, can halt foreclosure or repossession temporarily and may allow you to catch up on missed payments.  The automatic stay halts most collection efforts immediately—including foreclosure and repossession—giving you breathing room.

5. Will I lose everything if I file for bankruptcy?

Not necessarily. Bankruptcy laws include exemptions that protect certain types of property, such as your home, car, personal belongings, and retirement accounts.

💼 Chapter 7 Bankruptcy FAQs

6. What is Chapter 7 bankruptcy?

Chapter 7 bankruptcy is a liquidation process where non-exempt assets may be sold to pay creditors, and most unsecured debts are discharged.

7. Who qualifies for Chapter 7?

Eligibility is based on the “means test,” which compares your income to the median in your state. If you earn less than the median, or pass the test, you may qualify.

8. How long does Chapter 7 bankruptcy take?

Typically, a Chapter 7 case is completed in about 3–6 months from the date of filing.

9. What debts are not discharged in Chapter 7?

Common non-dischargeable debts include student loans, recent taxes, child support, and debts from fraud or criminal activity.

10. Will bankruptcy affect my credit score?

Yes, but it also gives you a chance to rebuild. Chapter 7 stays on your credit report for 10 years but you can begin rebuilding credit immediately after discharge.

📆 Chapter 13 Bankruptcy FAQs

11. What is Chapter 13 bankruptcy?

Chapter 13 allows individuals with a regular income to repay some or all of their debts over a 3- to 5-year period while keeping their assets.

12. Who should file Chapter 13 instead of Chapter 7?

You may choose Chapter 13 if you have non-exempt assets you want to keep, or if you’re behind on your mortgage or car payments and want to catch up.

13. How is my monthly Chapter 13 payment calculated?

The payment is based on your disposable income, the amount of your debt, and the value of your non-exempt assets.

14. What happens if I miss a Chapter 13 payment?

Missing payments could result in the dismissal of your case. However, courts often allow modifications or temporary relief for hardship situations.

15. Can I pay off my Chapter 13 plan early?

In some cases, yes—but this may require court approval and could affect how much debt you’re ultimately required to repay.

🧾 Filing, Process & Aftermath FAQs

16. How do I file for bankruptcy?

The process involves completing credit counseling, filing a petition with the bankruptcy court, attending a trustee meeting, and completing a debtor education course.

17. Do I need a lawyer to file bankruptcy?

Legally, no—but bankruptcy is complex, and a lawyer can help ensure you maximize exemptions, avoid costly mistakes, and navigate the court system.

18. Will everyone know I filed for bankruptcy?

Bankruptcy filings are public records, but unless someone is specifically looking for it, it’s unlikely to be widely known.

19. Can I keep my car if I file for bankruptcy?

In many cases, yes. It depends on your state’s exemption laws, your car’s equity, and whether you’re current on your loan payments.

20. How soon can I get credit after bankruptcy?

Some people receive credit card offers within months after discharge. You may be able to get a car loan within 1–2 years, and a mortgage in 2–4 years, depending on your credit rebuilding efforts.

📘 More General Consumer Bankruptcy FAQs

21. Will I lose my house or car?

Not necessarily. Exemptions often allow you to keep your home and car, especially in Chapter 13. We’ll help you protect what matters most.

22. Will bankruptcy ruin my credit forever?

No. While bankruptcy affects your credit, many clients see their credit improve within 12–18 months—especially if they eliminate large debts.

23. How much does bankruptcy cost?

We offer affordable, transparent flat fees and payment plans. Your initial consultation is always free