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1. Will I lose my home (or car or furniture) if I file bankruptcy? It depends on how much the property is worth. If your house is worth $85,000, but you owe $75,000, you have nothing to worry about. However, you house could be worth only $30,000, but if it is paid for, then you would not be able to file Chapter 7 Bankruptcy if you want to keep your home. The same holds true for your car and any other property you own. You are allowed exemptions for certain kinds and values of property. You also have exemptions based on the size of your family. In my opinion, your exemptions is one of the mot important things your lawyer can assist you with.
2. Will I ruin my credit by filing bankruptcy (the "10 year mistake" phobia)? In my opinion, NO. Many people cannot get credit anyway because of repossessions, judgements or slow pay notations on their credit report. While a bankruptcy discharge shows up on your credit report, it actually gives you a fresh start. Many of my clients have called me some time after completing their bankruptcy for a copy of their Discharge Notice, saying that a lender is ready to finance the purchase of a house or car, upon proof that they completed their bankruptcy.
3. Will people in my community, family, or at my job FIND OUT that I filed bankruptcy? In most cases, NO. The only ones who get direct notice that you filed bankruptcy are your creditors. Certain legal newspapers carry information on bankruptcies that are filed, but newspapers for the general public do not publish this information. In a Chapter 13 wage earnerr plan, your employer may need to be notified so that you plan payment can be made directly to the Chapter 13 Trustee.
4. I only want to file on SOME of my debts! Can I do this? The law requires that ALL creditors be listed, even the ones you want to keep. However, whether you file a Chapter 7 or a Chapter 13, there is a way to continue to pay those creditors that you may wish to keep, or may need to keep.
5. I already filed bankruptcy before, so I can't file again, right? That is not correct. You must wait 6 year from the date an earlier Chapter 7 was FILED to file another Chapter 7. However, a Chapter 13 can be filed within 6 years of an earlier Chapter 7, or after an earlier Chapter 13 was dismissed.
6. Do I have to go to Court? In most case you will never see a courtroom or a judge. The typical case requires that you appear for an "interview" with a Trustee appointed to handle your case. The Law Office of Charles H. Huber will advise you in advance about the questions to expect at your "interview."
7. What if I've already been sued, or have a garnishment running right now? Once we file your bankruptcy and get a case number, we can stop the garnishment or stop the lawsuit.
8. What if my house is already up for foreclosure? Is it too late to do anything about it? As long as the date of the foreclosure has not passed, we can still save your home, usually by filing Chapter 13. Once we file, the foreclosure will be stopped. The amount that you are behind will be paid back under the Chapter 13 Plan over an extended period of time, while you resume making regular monthly morgage payments directly to the mortgage company.
9. What if my car has already been repossessed? Is it too later to get it back? As long as the car has not been auctioned off, we can get the car back by filing Chapter 13. In order to get your car back, you will need to pay the repo fee upfront, the cost of storage from the date of repossession, and provide proof of full insurance coverage. The balance due on the car will then be paid off under the Chapter 13 Plan.
10. What about my student loan? Student loans are not dischargeable unless there is a showing of unusual hardship. As a result, in most cases, student loans will not be discharged.
11. What about my back income taxes that I owe? Income taxes (State and Federal) are dischargeable if they are more than 3 years old, and you filed a return for the year in question. Many people find it hard to believe that the IRS and the Missouri Department of Revenue can also be stopped by filing bankruptcy.
12. What about my back child support that I owe? Child support obligations are not dischargeable in bankruptcy. When large amounts of back child support are owed, I often recommend filing Chapter 13, and trying to pay the amounts owed over the term of the Plan.
13. How do I know if I should file a Chapter 7 or a Chapter 13 bankruptcy? We discuss your situation and decide which is best for you! Before I advise a client on which way to go, I want to know what kinds of debts a person has, what property the person owns, and what the person's budget looks like. Once I have a feel for the situation, I can advise you on youroptions. 14. Will I get to keep my tax refund? In Chapter 7, your right to receive a refund on the date you file is "property" which you may have to turn over to the Chapter 7 Trustee, unless you plan carefully. This is a surprise nobody likes! In Chapter 13, all refunds received during the case must be turned over to the Chapter 13 Trustee, unless you get special permission from the Court. |
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Law Office of Charles
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