Will bankruptcy stop wage garnishment?

When you are already struggling to pay your bills, having your paycheck garnished is a killer. Instantly you might not have enough money to pay your utilities, car payment, mortgage or even buy groceries or medicine. Filing for bankruptcy will stop the garnishment in its tracks. More…

Do I need an attorney to file bankruptcy?

Federal law does not require you to have an attorney. You can file for yourself, referred to as filing “pro se”. However, without the assistance of an attorney, it is extremely difficult to complete a bankruptcy successfully. You would be better served hiring an experienced bankruptcy attorney as bankruptcy can have many long-term financial and legal consequences. More…

I am married. Does my spouse also have to file bankruptcy with me?

No, sometimes only one files, but if you have joint debt and your spouse does not file then they will be responsible for the debt once you file. Many times when there is joint debt it just makes sense for both to file. In a Chapter 13 your spouses income will be considered as part of the “household” income and can be used towards the payment plan of the Chapter 13 whether their name is on the petition or not.

How do I know which bankruptcy chapter is best for me? Chapter 7 or Chapter 13?

This is best answered by your attorney.  The type depends on your circumstances, income, debts, status of those debts and if you have assets available to repay all or part of the these debts. Most people file Chapter 7, which wipes out the debts and lets you start fresh. Depending on circumstances, many can find themselves filing Chapter 13, the repayment bankruptcy. Bankruptcy law is very complex and involved, so determining if, when and what type of bankruptcy you need should be made with the input of an experienced bankruptcy attorney.

How do I know if I should file for bankruptcy?

If you’re asking this question odds are you should file. A good gauge is if you have more month than money. If you can’t pay your bills and are falling further and further behind you should file. The most common reasons for filing for bankruptcy are unemployment, illness, divorce, high medical bills, mortgage payment increases, overextended credit card or loans and/or unexpected expenses.

Who Can File For Bankruptcy?

Generally, anyone can file for bankruptcy. However, not everyone qualifies to file bankruptcy. In order to be eligible you must meet certain criteria. Your income cannot be over a certain amount, there are limits on the time between previous bankruptcy filings (if you have had any) and you cannot file for bankruptcy to defraud your creditors. You cannot intentionally run up large debts with the intention of filing for bankruptcy.

What is reorganization bankruptcy?

Chapter 13 is the most common reorganization bankruptcy for consumers. Chapter 13 bankruptcies are repayment plans. These plans are typically used to help catch up home or vehicle payments over a period of time, but not exclusively. Chapter 13 bankruptcies may be filed by individuals or married couples only. Because the total household income is involved in determining the Chapter 13 bankruptcy plan of reorganization More…

What is a liquidation bankruptcy?

Chapter 7 bankruptcy is a liquidation bankruptcy. A Chapter 7 bankruptcy is a straight wipe out of all of your debt, with a few exclusions thrown in. Chapter 7 bankruptcies may be filed by an individual, a husband and wife together or separately, as well as corporations looking to stop operations completely. A Chapter 7 bankruptcy is the most commonly filed form of bankruptcy, as well as the quickest way to get a “fresh start.” More…

What is bankruptcy?

Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts, or repay them, under the protection of the bankruptcy court. Bankruptcies can generally be described as “liquidation” (Chapter 7) or “reorganization” (Chapter 13).