What is Bankruptcy?
Bankruptcy is a legal action that allows debtors to get a fresh start on their finances. There are two options:
- Sell non-exempt property and discharge debt.
- Come up with a repayment plan over the next 3-5 years.
The right to file bankruptcy comes from federal law and all cases are handled in federal court!
What Can Bankruptcy Do for Me?
Bankruptcy may make it possible for you to:
- Get rid of most of your debt, known as “discharge of debt”.
- Stop all creditor actions, including foreclosure, repossession, and wage garnishment.
- Challenge creditor claims
How much will it cost for me to file for bankruptcy?
To file for bankruptcy, most people are required to pay a filing fee of $275-$300, depending on the type of bankruptcy that you file. If you meet certain financial hardship requirements, then you may be able to waive the filing fee.
Will bankruptcy get rid of all of my debts?
No. Bankruptcy will get rid of all unsecured debt, such as credit card loans and medical bills. It will not normally wipe out:
- Student loans
- Child support or alimony debt
- Tax debt
In addition, it will not wipe any debt that you failed to list on your bankruptcy petition.
Why Should I File for Bankruptcy?
If you are receiving constant calls from bill collectors, bankruptcy puts an immediate end to that harassment.
If you are under threat of foreclosure or eviction, bankruptcy will put an immediate stop to those actions.
If you are losing sleep, fighting with your spouse or partner, and/or in a constant state of anxiety over your financial difficulty, bankruptcy will alleviate you of that stress.
Bankruptcy will allow you to walk away from practically all of your debt such as credit card bills, loans, medical expenses, as well as other types of debt.
Buckley Law Offices Recognizes that most people are responsible and hardworking members of the community who want to be able to pay their debt, but because of circumstances such as divorce, unemployment, illness or injury, or the death of a primary wage earner, it has become a near impossible task to repay the debt arising from these circumstances. Bankruptcy allows the debtor to file for bankruptcy so that most, if not all, of the incurred debt is discharged, meaning that it is no longer owed. This is called being given the opportunity to have a “Fresh Start” and tens of thousands of people across America have availed themselves of this wonderful opportunity.
Do I Qualify for Bankruptcy?
Anyone can file for bankruptcy so long as they reside in, do business in, or have property located in the United States or its territories. You do not need to be a citizen. Married couples may file jointly, or can file individually. However every individual contemplating filing for bankruptcy must first pass a “Means Test” in order to qualify for bankruptcy. Buckley Law Offices can do a preliminary Means Test over the phone to determine your eligibility.
Does Anyone Come to My House?
Can I Keep My Property and Belongings?
Generally speaking, it is uncommon for anyone to lose any property or belongings through the bankruptcy process itself. The Bankruptcy Code provides for exemptions which protects practically everything from the claims of creditors. Items such as wages, 401(k)’s, IRA’s, pensions, social security, equity in your home, household contents, a motor vehicle and personal belongings are all protected. If it is determined that you will pass the Means Test, Buckley Law Offices will conduct an extensive in-person bankruptcy intake with you and will determine the property that is exempt.
Does Bankruptcy Affect My Employment?
Employers cannot discriminate against an individual who has sought bankruptcy protection. However, it is important to note that it might be a condition of employment that you notify your employer that you are thinking about filing for bankruptcy. This is most common in places of employment where security clearances are issued. You should consult your employment handbook, or contact your Human Resources Department if you are unsure if you must give prior notice.
Does Filing For Bankruptcy Prevent Me From Getting Future Services?
Individuals cannot be denied licenses, permits, student loans, and/or grants simply because they have filed for bankruptcy protection.
Still have more questions?
Call our attorneys to speak about your case! We offer a free consultation so you can discuss your case with us for free!