Here at Folland and Drown, LPA we specialize in Chapters 7 and 13 bankruptcy.

Bankruptcy FAQs

1. What types of bankruptcy relief is available?
There are four types of bankruptcy cases provided under the law:

• Chapter 7 is known as "straight" bankruptcy or "liquidation." It requires a debtor to give up property which exceeds certain limits called "exemptions", so the property can be sold to pay creditors.
• Chapter 11, known as "reorganization", is used by businesses and a few individual debtors whose debts are very large
• Chapter 12 is reserved for family farmers.
• Chapter 13 is called "debt adjustment". It requires a debtor to file a plan to pay debts (or parts of debts) from current income.

2. When is it appropriate to file bankruptcy?
Each situation is different, it is best to speak with an experienced bankruptcy lawyer.

3. Can a husband and wife file together for bankruptcy?
Yes.but is not required. A husband and wife can file separate or one can file while the other does not.

4. Can the bankruptcy court refuse to discharge my debts in bankruptcy?
Yes. Filing a bankruptcy petition does not guarantee that your debts will be discharged.

5. If I file Chapter 7 Bankruptcy, can I keep my vehicle?
It depends, on bankruptcy exemptions and if there is a lien against the car. You may be asked to sign a reaffirmation agreement and you MUST be current on all the vehicle payments

6. If I file Chapter 7 Bankruptcy, can I keep my house?
It depends, the bankruptcy allows for exemptions and you will have to provide the Trustee an appraisal.

7. How does filing bankruptcy affect my credit?
Filing for bankruptcy will be noted on your credit record for up to ten years.

8. What about co-signers?
If someone has co-signed a loan with you and you file for bankruptcy, the co-signer may have to pay your debt.

9. How often can I file bankruptcy?
A debtor cannot obtain a discharge in a Chapter 7 case if the debtor obtained a discharge in (a) a Chapter 7 case filed within the past 8 years, or (b) a Chapter 13 case filed within the past 6 years. The time periods in either case are measured from the commencement dates of the respective cases. The dates of discharge have no bearing on the disqualification.

A debtor cannot obtain a discharge in a Chapter 13 case if the debtor obtained a discharge in (a) a Chapter 7 case filed within the past 4 years, or (b) a Chapter 13 case filed within the past 2 years. The time periods in either case are measured from the commencement dates of the respective cases. The dates of discharge have no bearing on the disqualification.

10. Can filing bankruptcy stop bill collectors from calling?
Yes. The automatic stay prevents bill collectors from taking any action to collect debts.