The following Frequently Asked Questions (FAQ) are provided only as a general reference.
Each bankruptcy case is different, therefore the answers to these questions could be somewhat different for your specific set of circumstances.
Bankruptcy Basics
What is bankruptcy?
Bankruptcy is a court supervised proceeding which is intended to give debtors a break from creditors’ collection activities while the court tries to determine if there is any way possible to try and get some money to creditors in exchange for debts being discharged. …
Are there different types of bankruptcy?
There are several chapters of bankruptcy including Chapter 7, Chapter 9, Chapter 11, Chapter 12, and Chapter 13. The majority of consumer cases are either Chapter 7 or Chapter 13 …
What is the process to file bankruptcy?
All you need to do is contact our office and set a free consultation with one of our experienced bankruptcy attorneys. Each of our attorneys has focused almost exclusively on the bankruptcy …
How long does the bankruptcy process take?
In a Chapter 7 case, once the case is filed we will attend a meeting with the court approximately 30-45 days after the case is filed and the debts will be discharged approximately 60 days later …
Is bankruptcy right for me?
While we will be able to assist you with the entire bankruptcy process and will answer all of you questions to make sure you understand the pro’s and con’s of filing, whether to file remains a personal choice …
How much does it cost to file bankruptcy?
There are two components to figuring the cost for filing bankruptcy. The first, and easiest cost to calculate is the court’s filing fee, which is the amount the court charges to accept a bankruptcy filing …
Do I need a lawyer to file for bankruptcy?
No, the court does not require that you use an attorney and you may be able to go through the process without an attorney. However, we would not recommend it …
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Marriage & Divorce
Do both spouses have to file?
No, there is no requirement in the Bankruptcy Code that a married couple must file bankruptcy jointly. In fact, in many cases our office will not recommend a joint filing. For example, if a couple is …
Does being divorced affect bankruptcy?
Yes, it might in several ways. There are certain debts that may be incurred during a divorce through a written court order or property settlement that may not be dischargeable in a Chapter 7 bankruptcy …
Should I file for divorce before filing for bankruptcy?
There are many factors that would help determine how to answer that question. Such things might include:
How long have the parties been separated? What assets do you and the other spouse have? …
Lawsuits
What if I’ve been sued for overdue debt?
If you have been sued for an overdue debt, you can presume that the creditor will try to get a judgment on that suit as quickly as possible. Once a judgment is entered, there will automatically be …
Alternatives to Bankruptcy
What happens if I do not declare bankruptcy?
Our office often works with creditors to try and negotiate a lower settlement on claims and has reached great success. Our office oftentimes has a greater success in non-bankruptcy workouts because …
Privacy
Whom do I need to inform that I have filed for bankruptcy?
Certainly in every case, you must list all of your creditors (even the ones you want to keep like a house and car and even the ones that are not dischargeable like student loans) …
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Employment
Will bankruptcy affect my career or professional license?
Such a question is similar to asking, “Will someone break into my home?” My answer is the same: That is not supposed to happen. The Bankruptcy Code specifically states, “No private employer may terminate …
Will my paycheck be garnished?
In most Chapter 7 bankruptcy cases, your wages cannot be garnished. Exceptions exist, such as past-due child support. If you have a job and do need to declare bankruptcy …
Court Appearance
Will I need to go to court?
Yes and no. You will need to attend a “meeting of creditors” which is normally located at a Federal Courthouse, so you will likely have been in a court. However, in that vast majority of cases, you …
Means Test
What is a bankruptcy means test?
A bankruptcy means test is a determination of your are eligibility for Chapter 7. Your family size, along with your income level compared to the medium income in Indiana, will determine if you pass the means test and are eligible for …
Age / Eldery
Should my age influence my decision to file for bankruptcy?
Naturally, your age and future goals will be a factor when considering to file for bankruptcy. If you are older and near retirement or you already live on a fixed income, your decision may be quite different than …
Exemptions
What are exemptions?
In a Chapter 7 bankruptcy, property that may be kept (which is exempt from liquidation) is called an exemption. In Indiana, the major exemptions are as follows …
Property & Assets
Can I keep my house if I file for bankruptcy?
In many personal bankruptcy cases you can keep your primary residence. If you feel you need to make an immediate decision about bankruptcy, because you are having trouble (or have stopped) making the mortgage payments on your home …
Does my house being in foreclosure affect my ability to file for bankruptcy?
Filing for bankruptcy may delay (Chapter 7) or prevent (Chapter 13) you from losing your primary residence to foreclosure. If you are at a point where you need more information about the affect foreclosure might have on your ability to file for bankruptcy …
What if I own other real estate property?
Real estate property other than your primary residence may not be considered as exemptions in a personal bankruptcy case, but every case is different, so your situation would need …
Can I transfer ownership of property prior to filing for bankruptcy?
Transferring ownership of property immediately prior to filing for bankruptcy will cause you serious problems, so do not do it. If you are considering transferring property and then declaring bankruptcy …
Can I keep my IRA account?
In many cases, qualified IRA accounts are considered as exemptions in a personal bankruptcy. Some IRA accounts may not qualify, so …
Can I keep my tax refund?
Being able to keep your tax refund during bankruptcy will depend on a few circumstances, so be sure to have your situation properly evaluated by your …
Vehicles
Can I keep my car or truck?
Yes, there are several different chapters of bankruptcy and we will make sure that you are able to keep your vehicle whether you are current on payments, whether you are behind on payments, or even if …
Can I keep more than one vehicle?
Whether you can or should keep more than one vehicle after you file for bankruptcy will depend on several factors regarding your realistic needs and vehicle titles. You should …
Does bankruptcy affect my driver’s license?
You will not lose your driver’s license if you file for bankruptcy. If your driver’s license has been suspended, in a select few cases, such as where you lost your license only because you …
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Debt Relief
Can I stop bill collectors from calling me?
The moment a bankruptcy case is filed the law requires that creditors stop all collection activity including telephone calls, billings, garnishments, freezing bank accounts, and all lawsuits and …
Can I discharge credit card debt?
Yes, upon completion of a bankruptcy your credit card debt will be …
Can I discharge medical bills?
Yes, just like credit cards, the successful completion of a bankruptcy will discharge medical bills. A very high percentage of our clients feel …
Can I discharge federal, state, or local taxes?
Under limited conditions, you may be able to discharge some taxes you owe, but you need to carefully determine if your tax debt actually meets those conditions. If you have tax debt and …
Can I discharge student loans?
Most bills, including student loans, will be discharged by a Chapter 13 bankruptcy (wage earner plan where you pay your bills.) In Chapter 7 bankruptcy …
Automatic Stay
What is an automatic stay?
In U.S. bankruptcy law, an automatic stay prevents most creditors from collecting or contacting a debtor who …
Credit Score
How will bankruptcy affect my credit score?
Naturally, filing for bankruptcy will negatively impact your credit score. The severity or long-term influence on your credit score will vary in …
How do I rebuild my credit score after bankruptcy?
Maintaining a steady job and residence at one location are good steps toward rebuilding your credit score. Filing bankruptcy can remain on your credit for …
After Filing for Bankruptcy
Can I add creditors or additional bills after I file?
If your bankruptcy case has not been closed, you should be able to add creditors or additional bills after you file. Under certain circumstances …
What is a bankruptcy trustee?
A trustee in bankruptcy is an entity, often an individual, in charge of administering a bankruptcy estate. In Chapter 13, a trustee receives …
What happens if I fail to make payments to the trustee?
If you fail to make payments to your Chapter 13 trustee, your bankruptcy status may be voided and …
Can I file for bankruptcy more than once?
You can file for bankruptcy more than once. How quickly you can file again depends on …
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