Frequently Asked Questions About Bankruptcy
Steven Packard, Attorney at Law, Proudly Helping Clients in Beaumont
bankruptcy, many people have similar questions and concerns. To better serve the
needs of my clients, I have compiled a list of some of the most common
Not sure if bankruptcy is right for you? Learn more below.
Will bankruptcy eliminate all my debts?
Bankruptcy may discharge most or all your unsecured debts depending on
whether you can afford to pay them. There are some exceptions to this.
Child support and alimony, for example, are not discharged by bankruptcy.
Likewise, student loans usually are not discharged. There are other debts
that may not be dischargeable, such as those incurred through fraud. Still,
other debts, like federal taxes, may be dischargeable only if certain
conditions are met. While there are some debts that may not be dischargeable,
a bankruptcy plan may allow you to satisfy these debts through payment
and get them behind you. Secured debts may be satisfied through a payment
plan or other treatment pursuant to a bankruptcy plan. Different forms
of debt relief are available depending on whether you file under
Chapter 13 or
Chapter 7 bankruptcy.
Will bankruptcy affect my credit?
Yes. Bankruptcy can appear on your credit record generally for up to 10
years. However, once you have completed the bankruptcy process, you may
be in a better financial position to pay your bills and gradually rebuild
your credit score. Other factors, such as chronic delinquent payments,
also may seriously affect a person’s credit. Bankruptcy may bring
finality to your debts and allow you to heal financially. Rebuilding one’s
credit takes time and consistency.
Is Chapter 7 better than Chapter 13 bankruptcy? Not necessarily. Chapter 7 bankruptcies are a lot faster than Chapter
13 bankruptcies, but they do not give the same kinds of protection that
a Chapter 13 bankruptcy does. In a Chapter 7 bankruptcy, the trustee may
take your non-exempt property (including your home if it is not fully
exempt) and sell it in order to pay your debts. In a Chapter 13 bankruptcy,
you may keep your non-exempt property by accounting for its value in the
plan payment. Also, a Chapter 13 bankruptcy may allow for more favorable
interest rates than a Chapter 7 reaffirmation. Finally, Chapter 13 may
allow for more affordable payments on secured debt than a Chapter 7 reaffirmation.
In some situations, such as where all of one’s property is exempt,
and the person is current in his or her mortgage and car payments, a Chapter
7 may make more sense.
Click here to see if you qualify for Chapter 7 bankruptcy.
Do I have to go to court?
Most cases are handled without the need for the person to appear in court.
If there is an issue that the parties cannot resolve out of court, or
if you are asking the judge for special consideration, you may need to
attend a court hearing. Generally speaking, you will only be required
to attend a meeting of the creditors. In this meeting, creditors have
the opportunity to appear and ask questions if they so choose. The trustee’s
office may ask questions as well. In the rare event that you need to appear
in court, I will be there with you to protect your rights and interests.
Why should I choose your firm to handle my case?
I have been practicing law since 1992 and have experience in several areas
of law that affect people in everyday life. Because of this, I am able
to evaluate your case through a global perspective. I understand the relationship
between bankruptcy and the other issues people face. I truly care about
the people I represent, and I enjoy helping real people solve real life
problems. I strive to provide the highest quality legal representation
that I can. I strive to keep my representation affordable, professional,
and client-focused, and I offer a
free case evaluation to help people gain a better understanding of their legal options.
More questions? Call me, Steven Packard, Attorney at Law.
If you have questions or would like to speak further about your situation, please
contact my Beaumont bankruptcy office at your earliest convenience. I would be
happy to discuss your case with you and explore the options available to you.