Frequently Asked Bankruptcy Questions
FAQ's
Clear Answers to Help You Navigate Your Financial Questions
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Can I keep my assets and savings in bankruptcy?
In a Chapter 7 bankruptcy the person turns over all of their non-exempt assets or property (vehicle, house, savings, for example) to a bankruptcy trustee who liquidates it and distributes the proceeds to the unsecured creditors such as credit card companies, medical bills or loans. People can usually keep most of their personal property (jewelry, tools, clothing, for example).
In a Chapter 13 bankruptcy the person files a payment plan with the bankruptcy trustee and agrees to pay all future debts on time while an affordable monthly payment plan allows them to pay back their creditors partially or in full over a three to five-year period. In return, the debtor can keep their property (home, vehicle and other assets) so long as the plan payments are made.
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How long does the bankruptcy process take?
The Chapter 7 bankruptcy process normally takes about six months.
The Chapter 13 bankruptcy process can extend to 60 months as planned payments are made to creditors under the bankruptcy plan.
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What happens to child support/alimony in bankruptcy?
Child support and alimony are usually not be discharged in bankruptcy. In other words, they are not covered by bankruptcy and the person filing will still have to pay them including any arrears.
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How much does it cost to file for bankruptcy?
Everyone receives a free consultation with a skilled, experienced Boleman Law attorney before any costs or fees are payable.
Chapter 7:
$338 Bankruptcy Court filing fee*, $25 credit counseling fee**, $40-$80 multi-source credit report** attorney fees vary depending on the specifics of the case***.
Chapter 13:
$313 Bankruptcy Court filing fee*, credit counseling fee**
Attorney fees vary depending on the specifics of the case and can be paid over up to 60 months through the client’s payment plan.
*The Bankruptcy Courts require clients to pay these costs themselves. The Firm is prohibited from paying them.
**Clients may not be required to pay these costs in certain circumstances.
***The exclusive Boleman Helps program may reduce Chapter 7 attorney fees for qualified people. Discuss this option with your Boleman Law attorney during your free consultation.
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Can bankruptcy eliminate credit card debt?
Yes. Credit card debt may be eliminated in bankruptcy.
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What is debtor certification?
Your bankruptcy discharge will be denied if you fail to complete a Debtor’s Education Course, and obtain a Pre-Discharge Education certificate.
Contact one of the agencies listed below to obtain your Pre-Discharge Education certificate:
GreenPath Debt Solutions
888.860.4220
www.greenpathbk.comJane Jolley & Partners
888.533.3423
www.jjandpartners.comCredAbility
800.251.2227
www.credability.orgDave Ramsey’s Debtor Education
online only
www.daveramsey.com/debtor-education/Sage Personal Finance
The Boleman Law Firm does not endorse any of the agencies mentioned above. You may use other agencies to obtain your pre-discharge certificate. Click here for a full list of Debtor Education Agencies approved by the U.S. Trustee.
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Do I still have to pay fines in bankruptcy?
Yes. Lawfully issued fines may not be discharged in bankruptcy – they will still be owed.
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What are common foreclosure scams?
Beware of anyone who…
- Demands upfront fees
- Guarantees to stop your foreclosure
- Asks for payment by wire or cashier’s check
- Tells you not to contact a lawyer or your lender
- Asks you to send mortgage payments directly to them
- Proposes you sign over or “share” your property deed or title
- Suggests a lease-and-buyback arrangement
- Proposes that he or she fill out paperwork for you
- Pressures you to sign documents without reading or that you do not understand
- Requests Power of Attorney
For more information: www.ftc.gov/bcp/menus/consumer/credit.shtm. Click on “Mortgages/Real Estate,” then “Foreclosure Rescue Scams.”
Source: Federal Trade Commission
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Can bankruptcy stop foreclosure?
Yes. In Virginia bankruptcy is the only certain way to stop a foreclosure. The foreclosure is stopped immediately when the bankruptcy is filed. During your free consultation with a Boleman Law attorney the differences on how a Chapter 7 and a Chapter 13 bankruptcy affects foreclosure will be fully explained.
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Can I keep my home in bankruptcy?
A Chapter 13 bankruptcy usually allows you to keep your home. A Chapter 7 bankruptcy usually will not allow you to keep your home. During your free consultation with a Boleman Law attorney the differences on how a Chapter 7 and a Chapter 13 bankruptcy affects keeping your home will be fully explained.
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Do I have to declare all income and assets to the bankruptcy court?
Yes. Full disclosure of all income and assets is required. Failure to do so may result in fraud charges.
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Can bankruptcy help me save my house?In Virginia a bankruptcy filing immediately stops a foreclosure. A Chapter 13 bankruptcy filing payment plan allows you up to 60 months to catch up on mortgage arrears while keeping the mortgage payments current in the future. A Chapter 7 bankruptcy filing will stop foreclosure for a few months, giving you time to locate new accommodation and move in an orderly fashion. During your free consultation with a Boleman Law attorney the differences on how a Chapter 7 and a Chapter 13 bankruptcy affects keeping your home will be fully explained.
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Can bankruptcy eliminate payday/title/internet loan debt?
Payday, title, and Internet loans may be eliminated in bankruptcy.
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Can bankruptcy eliminate second mortgage debt?
A second mortgage may be eliminated in bankruptcy when certain conditions are met. During your free consultation with a Boleman Law attorney the conditions will be fully explained.
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Will bankruptcy affect my government security clearance?The adjudicating agency (usually the military or a government department) has the final say and there is an appeal process. If you have been completely truthful in the interviews and the bankruptcy was filed to mitigate a financial situation not under your control (overwhelming medical bills, for example), your security clearance may not be affected.
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Do I have to pay back taxes if I’m in bankruptcy?
Federal and state taxes may not be discharged in bankruptcy. However there are options which may allow taxes to be reduced or forgiven. During your free consultation with a Boleman Law attorney these options will be fully explained.
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Can bankruptcy stop vehicle repossession?
Bankruptcy may stop vehicle repossession and can sometimes get the vehicle unlocked or returned even if it has been already repossessed. During your free consultation with a Boleman Law attorney these options will be fully explained.
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Can I keep my car or truck in bankruptcy?
A Chapter 13 bankruptcy may allow you to keep your vehicle, giving you up to 60 months to catch up on arrears so long as you keep payments current going forward. In a Chapter 7 bankruptcy you usually cannot keep your vehicle. During your free consultation with a Boleman Law attorney these options will be fully explained.
