Common Questions and Answers About Bankruptcy
What’s the difference between Chapter 11 and Chapter 13? Will I be able to keep my car if I file for bankruptcy? Our FAQ page has the answers to the most common questions our law firm has received about bankruptcy and debt relief. Browse or search our FAQ to get help.
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Why should I choose William T. Nestor, PLLC for my Bankruptcy Service?
It is our mission to help those in need of Bankruptcy relief and we will put forth the effort required to protect you to the greatest extent possible. We have also invested our time and money into education and software designed to assist debtors to the greatest extent possible.
Does the law provide any options for debtor who may not qualify for Bankruptcy relief under Chapter 7?
Yes, the Bankruptcy Code contains other forms of Bankruptcy relief for individual consumer debtors. William T. Nestor PLLC will help you determine what type of Bankruptcy is available and best suited to your needs.
What role will I play in the Bankruptcy process?
You will play a vital role. The Bankruptcy process is a tedious and meticulous process that requires us to obtain a great deal of information from the debtor.
As a debtor, you will be required to provide our office with your tax returns, a list of all creditors, any pending collection litigation, copies of your bank statements, credit card invoices, medical bills, and any collection agencies pursuing your delinquent accounts, just to name a few. This may sound very burdensome but it is absolutely required.
What debts cannot be discharged in Bankruptcy?
In most cases the Bankruptcy process will not relieve the debtor of his or her obligation to pay delinquent taxes, student loans, and almost any court ordered obligation, including but not limited to: alimony, child support, criminal restitution, fines and civil judgments involving the use of an automobile, boat, or airplane, when the debtor was adjudged to have been impaired on alcohol or drugs when an injury or death occurred.
Am I eligible to file for Bankruptcy relief?
The “means test” is a qualifying test that you must pass before you’re eligible to file under Chapter 7 of the U.S. Bankruptcy Code. It was introduced by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
The actual test involves a series of calculations, including a comparison of your family’s income to the median income of a family your size in your state. Depending on where you fall, you may also have to calculate your disposable income. William T. Nestor, PLLC will gladly assist you in determining whether you are a candidate for Chapter 7 Bankruptcy. Let our office assist you in determining if you pass the “means test” and guide you thorough the Bankruptcy process.
Should I file for Bankruptcy relief?
Only you can answer this question. Once a Bankruptcy petition is filed an automatic stay will take effect. This automatic stay will protect debtors from all forms of collection letters, repossession, foreclosure, garnishment and lawsuits. However, it is important to note that Bankruptcy will affect your credit rating and your ability to obtain financing in the future.
Credit bureaus and lending institutions will generally have access to this information for 10 years. Regardless, you will have the ability to improved your credit rating during the years following Bankruptcy by paying your financial obligations as required by any lender.
Will filing for Bankruptcy let me keep all of my assets and give me a fresh start economically?
Generally yes, as it is the design of the Bankruptcy process to assist the debtor in obtaining a “fresh start” in his or her financial future. However, only some assets can be afforded Bankruptcy protection. In most cases, the debtor’s primary residence, automobile, and a certain amount of other goods and items can be protected. However, a common Bankruptcy myth is that the debtor will become free and clear of all of their present financial obligations. This is not always true.
Although a discharge in Bankruptcy will likely relieve the debtor of much, if not all unsecured debt, such as credit cards or medical debt, timely payments must still be made on some of the assets the debtor chooses to keep. Although a successful Bankruptcy debtor is not required to continue making payments for the household goods, furnishings, trade tools, jewelry and appliances that are being exempted during the Bankruptcy process, a debtor is generally obligated to continue paying the balance owed upon their home and vehicle.