Practice Areas > Bankruptcy > FAQs
We have tried to be thorough yet succinct on our site--but you may still have a
few questions. Browse through the following questions; it is our hope you
will find the answers you seek. If not, drop us a line at
info@brauerlawoffices.com
Q. Will I lose everything if I file for a personal bankruptcy?
A. Typically, you can file for bankruptcy and still keep your house, car, and personal
belongings. Brauer Law Offices, PLC will help determine which items may be protected.
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Q. What if I owe more on my car than what it is worth?
A. The bankruptcy Trustee will not sell your car, because after the sale, there will not
be any proceeds left for creditors.
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Q. What if I owe more on my house than what it is worth?
A. The bankruptcy Trustee will not sell your home, because after the sale, there will not
be any proceeds left for creditors. Even if there is available equity, we can usually
use state bankruptcy exemptions to protect it.
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Q. What will happen to my property if I DON’T file bankruptcy?
A. There is the possibility of losing much more if you don’t file bankruptcy because
creditors can:
1) Sue and attach your bank accounts
2) Garnish your wages
3) Attach a lien to your property
4) Seize your personal property
The end result is that you may miss your monthly payments on a car, rent, or mortgage
payment, thus making it more of a challenge to provide life’s basic necessities.
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Q. When will the creditor calls stop?
A.Immediately. Once you retain Brauer Law Offices, PLC to represent you in your
bankruptcy filing, all creditor calls will be sent to your attorney. No more harassment
from your creditors!!
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Q. Will I need to include my spouse in the bankruptcy filing?
A. If the debts are in your name only, then your spouse may not have to file the
bankruptcy with you. In most cases, creditors cannot pursue a non-filing spouse
unless they are a legally bound co-debtor. Furthermore, the bankruptcy shouldn’t
show on the non-filing spouse's credit report. State laws vary, however, so it is
critical that you ask your attorney whether your spouse needs to file with you.
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Q. Who will know if I file bankruptcy?
A. Generally, only those entities involved (creditors), the court, and the IRS will
be notified of your bankruptcy filing. In most cases, the bankruptcy will not affect
your taxes. Your employer will receive notification only if they are one of the
creditors in your filing. The filing is a matter of public record, so anyone can
find out about it.
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Q. Will I be able to borrow money soon after the bankruptcy
is discharged?
A. Since each credit company is different, we cannot predict what they are, or will
be looking for when approving credit requests. What we do know is that any kind
of debt reduction program will have some negative affect on your credit.
However, filing bankruptcy can eliminate or consolidate debt; therefore your debt-to-income
ratio (amount of contractual debt in relation to your income) should be lower. Creditors
use key ratios in determining affordability of payments.
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Q. Will I be able to rent or lease after I file for bankruptcy?
A. If you are currently renting and have a satisfactory payment history with your
landlord, they may choose not to rerun a credit report on you. If the landlord is
not included as a creditor, then they will not be notified of your filing.
As for leases, typically credit reports are pulled. The leasing companies are concerned
about the credit scores and “non-perfections” in your credit history. Ultimately,
each credit company is different, we cannot predict what they are, or will be looking
for when approving credit requests.
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Q. What if I am currently being sued?
A. CALL US NOW! With sufficient notice, we may be able to file bankruptcy, putting
a stop to lawsuits or wage garnishments.
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Q.What if my house is being foreclosed on, or my mortgage
company has started foreclosure proceedings?
A. CALL US NOW! Filing bankruptcy early enough in the foreclosure process can bring
a halt to most foreclosure actions.
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Q. What if my car is being repossessed?
A. CALL US NOW! If you are behind on your car payments, we may be able to negotiate
with your loan company or file bankruptcy on your behalf so that you don’t lose
your vehicle.
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Q. What criteria should I use in deciding which bankruptcy
lawyer to use?
A. How much experience the attorney has with filings in your state should play a
big part in your decision. Although bankruptcy laws are Federal, there are many
state exemptions that exist, and you will want someone that knows all of the exemptions
that are available to you. This is especially critical if you have a house, car,
or other assets that you want to try and protect.
Fees are another consideration, but don’t sacrifice quality for cost. An experienced
attorney may be more expensive, but will end up costing you far less in the long
run. Be aware of attorneys that will not quote you a cost over the phone. Your time
is precious and time is of the essence when filing, so don’t waste any of it.
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Q.What if I have student loans and/or tax debt?
A. Under a Chapter 7 bankruptcy, student loans cannot be included. However, under
a Chapter 13, student loans, in addition to your other debts, can be consolidated
into one payment. Under the Chapter 13, calls from creditors, collectors, and attempts
to garnish wages will stop.
Tax debts can be discharged only if you file bankruptcy after 3 years of filing
an accurate tax return. If the tax return is filed late, then it will be two years
after filing and accurate tax return. However, it is critical to speak with the
attorney regarding past due taxes.
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