Q: Will I lose anything after I file for bankruptcy?
A: Generally, you may file for bankruptcy and keep all of your personal belongings, including your house, your car and all household items. We will make sure that all of your personal belongings are protected. If you owe more on your car than the car is worth, the bankruptcy court will not sell your car, because after the sale there would be no money left over to make a distribution to your creditors. The same goes for your home and personal property. Even if your property is worth more than what is owed on it, usually we can use the state bankruptcy exemptions to protect these items.
You may be more at risk of losing property if you don't file bankruptcy, as creditors can sue you and attach your bank accounts, garnish your wages and attach and seize your property. As a result, you may miss rent, mortgage or car payments, making it difficult to provide even your most basic necessities.
Q: How do I know if I should file bankruptcy?
A: *Are you currently being sued?
If you are and you own a home, we strongly urge you to contact us immediately about filing bankruptcy. A bankruptcy will stop a lawsuit immediately and prevent your creditors from placing a lien on your home or garnishing your wages.
*Is your home being foreclosed or is your car about to be repossessed?
If it is, very often bankruptcy may prevent the foreclosure action or repossession from proceeding and allow you to consolidate your mortgage arrears or automobile balance and make payments on those debts over time through a payment plan. If your house is being foreclosed or your car is about to be repossessed, Chapter 7 may not be an option. Chapter 13 may save your house and your car.
*Do credit cards or medical bills have you so deep in debt that you can't even save for the future?
If you are only paying the minimum payment on credit card bills from month to month (generally from two to three percent of the outstanding balance), and the interest rate is only 15%, it will take about 20 years to pay off a $10,000 debt. Do you really want to be in the same financial situation in twenty years? Chapter 7 bankruptcy can provide you with a fresh start that you are entitled to under the law and get you out of debt.
Q: Will I get relief from harrassing creditors?
A: Yes you will - Immediately. As soon as you come into our office and retain our services, we will give you contact information that you can refer all future calls from creditors.
Q: Does filing for bankruptcy make me a bad person?
A: Absolutely not. Everyone is entitled to a fresh start. Many times, events occur in people's lives that cannot be expected. You may have had a sudden loss in income, a medical catastrophe, a work injury, or any one of numerous other financial difficulties that would have been almost impossible for which to plan. Most of the people that we represent are good people who have encountered unfortunate circumstances and just want to get a fresh start on life. We understand that for most of our clients bankruptcy is the last resort, and you should not feel quilty about filing for bankruptcy.
Q: How do I choose a bankruptcy attorney?
A: When considering filing bankruptcy, you want to be advised by someone who is familiar and experienced with bankruptcy law. Especially when you own a home or car or have other assets that you are trying to protect, you do not want your advice to come from an attorney who knows a little bit about a lot of different areas of law, but not a lot about bankruptcy. Here at Fresh Start Bankruptcy - The Law Offices of Douglas M. Heagler, we spend almost all of our time on bankruptcy and getting people just like you out of debt.