Bankruptcy Filing FAQs
At the California Law Office of Alec Harshey, our legal team understands that you may have questions and concerns related to Chapter 7 or Chapter 13 bankruptcy protection. Our lawyers are dedicated to helping individuals achieve their debt management goals. We provide comprehensive representation tailored to your unique needs.
Common Concerns About Filing Bankruptcy
As dedicated bankruptcy lawyers, we take great care in educating our clients on the facts related to their situation. Through the thousands of bankruptcy cases our office has filed, our clients have expressed these concerns:
Will I lose my house, personal belongings or car if I file for Chapter 7 or Chapter 13? No. You will not automatically lose your house, car or personal belongings if you file bankruptcy. In almost all cases, if you can afford your mortgage payment and your car payment(s) you can keep your house and car(s). In almost all cases, you can keep all your personal belongings. And no, no one is going visit your house to look at your personal belongings if you just have normal furniture and furnishings.
Will I ever be able to get credit after bankruptcy? Yes. You will get credit again. Most people who file for bankruptcy do re-establish their credit. In most cases your present bad credit score goes up after you file bankruptcy because you eliminated all your unsecured debt
Will I be required to sell my possessions? No. In almost all cases, you can keep all your personal belongings. And no, no one is going to visit your house to look at your personal belongings if you just have normal furniture and furnishings
If I’m married, does my spouse also have to file? No. Both spouses do not have to file bankruptcy. While it is usually a good idea for both spouses to file bankruptcy in a community property State like California, only one spouse can file bankruptcy. However, the income and assets of the non-filing spouse must always be listed in the bankruptcy filing.
If only one spouse files alone will it hurt the other spouse’s credit? No. One spouse can file a bankruptcy without hurting the other spouse’s credit. Each spouse, by law, has their own credit history.
Will my retirement account be liquidated to pay off creditors? No. Your retirement accounts will not be liquidated to pay your creditors. Unless your 401(k) and/or IRA accounts are in excess of one million dollars, you will get to keep them.
Will my work or friends find out I filed for bankruptcy? No. Your work and friends will not know you filed bankruptcy, unless you tell them. Only your creditors and people you tell will know you filed bankruptcy.
Can I get rid of a debt if a creditor has already obtained a judgment against me? Yes. Even if your creditor has sued you and obtained a court judgment, your personal obligation to pay that court judgment is discharged in bankruptcy.
Can my creditors continue to attempt to collect the debt I owe them after I file for bankruptcy? No. Your unsecured creditors cannot still try and collect after bankruptcy. Filing bankruptcy automatically stops collection activity by your creditors and obtaining a discharge of your debts in bankruptcy permanently prevents your creditors from future collection activity.
Can I discharge taxes in bankruptcy? Yes. Some taxes can be discharged in bankruptcy, generally personal income taxes more than three years old, can, subject to certain exceptions, be discharged in bankruptcy.
Can I just file for bankruptcy if I can’t pay my debts? No. You cannot just file bankruptcy just because you are unable to pay your debts. Under present bankruptcy law you must qualify for Chapter 7 bankruptcy and Chapter 13 bankruptcy. Our office will be able to advise you whether you qualify for Chapter 7 or Chapter 13 bankruptcy.
Put Our Experience In Your Corner
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.