Frequently Asked Questions
Below are some of the common questions asked by those who are considering filing bankruptcy. It is not an exhaustive list, nor is it intended to give legal advice. Contact an attorney if you are seriously considering bankruptcy. The attorney will be able to answer your questions and assist you with options for debt relief.
Will my employer and landlord find out about my bankruptcy?
Because a bankruptcy petition is a public record, it is possible. Unless you owe back rent to your landlord, you won't be listing them in your petition. It is not likely that your landlord will find out, but it is possible. If you are being garnisheed, your employer will learn about the bankruptcy.
Will my employer fire me for filing bankruptcy?
Employers are prohibited by law from firing you due to bankruptcy.
Does my spouse have to file bankruptcy with me?
No, you may file an individual bankruptcy. However, income from your spouse must be listed in your paperwork. Also, your spouse will continue to be responsible for any debts owed jointly with you.
Will I be able to get credit again?
You will be able to get credit, especially on personal property items like cars and televisions. Buying a house takes longer. Some companies are more willing to extend credit to persons who have filed bankruptcy than other companies are. Discuss this in further detail with your attorney.
Will I have to go to court?
Yes. About three or four weeks after your bankruptcy petition is filed, you will need to attend a Section 341 creditors meeting.
What should I expect at the court hearing?
The trustee and your attorney will ask you questions under oath about the bankruptcy papers that you signed and that your attorney filed for you. Sometimes, but not always, creditors may appear at the hearing and ask you questions.
What do I need to bring with me to the court hearing?
Bring photo identification, such as your driver's license. Also bring proof of your social security number, so bring documentation, such as your social security card or a W-2.
May I keep using my credit cards if I've decided to file bankruptcy?
No. You should stop using the credit cards immediately. Charges run up just before filing can be excepted from discharge and may be considered fraudulent.
Should I transfer assets to friends or family to protect them from being taken by the trustee?
No. Do not transfer anything, as it could be considered fraudulent to do so.
Can I keep my house and my car?
To keep your house, you must continue to make timely payments on the home and keep it insured. Failure to do either could result in repossession of your home. You must continue to make car payments and keep the vehicle insured.
Will I be allowed to keep any property other than a house and a vehicle?
Yes, you will be able to keep certain property, which, under bankruptcy law, is exempt. Consult your attorney about which property is exempt and which is not.
Do I have to list all my assets?
You must list all your assets, whether it is exempt or not. Do not try to hide or transfer your property. Consult your attorney as to legal pre-bankruptcy planning that you can do.
I have a credit card that I would like to not list so that I could use it later. Is this okay?
If your card has a balance owed at the time of filing, you are required to list the debt. If there is no balance owing on the card, you are not required to list it. Be aware, however, that even if you do not list the card, it is possible that the credit card company may find out about your bankruptcy and could cancel the card. Often, credit card companies will allow you to keep a card if you agree to reaffirm the debt for the amount owed. You must disclose all debts and assets, under penalty of perjury. In addition to risking denial of discharge, committing perjury in connection with your case is also a federal crime.
Will filing bankruptcy provide relief from creditors and debt collectors calling?
Yes. Once you file, the automatic stay (freeze order) prevents creditors from suing you, garnisheeing your paycheck, and even from telephoning you. Once you hire an attorney, the attorney can field phone calls from creditors until the bankruptcy is filed. For a time after filing, it is possible that you will still receive a few phone calls until creditors get notice.
How often can I file a Chapter 7 bankruptcy?
You are allowed to file a Chapter 7 once every eight years, measured from filing date to filing date. If you wish to file bankruptcy, and it has been less than eight years since the filing of your Chapter 7 bankruptcy, you may be able to file a Chapter 13 bankruptcy. Discuss your options with your attorney.
What is a Chapter 13 bankruptcy?
A Chapter 13 allows wage earners with regular income to draw up a plan to repay all or a portion of their debts. The debtors submit a plan to make monthly installment payments to the bankruptcy trustee. The trustee will distribute the funds paid to creditors.
Will all my debts be discharged?
Some debts are not dischargeable. Debts that are often not dischargeable include child support and alimony, student loans, most taxes, criminal fines, and civil judgments for driving drunk or under the influence of drugs. If you have these types of debts, you will need to talk with your attorney about your own situation to find out if your debt is dischargeable.
Will my employer and landlord find out about my bankruptcy?
Because a bankruptcy petition is a public record, it is possible. Unless you owe back rent to your landlord, you won't be listing them in your petition. It is not likely that your landlord will find out, but it is possible. If you are being garnisheed, your employer will learn about the bankruptcy.
Will my employer fire me for filing bankruptcy?
Employers are prohibited by law from firing you due to bankruptcy.
Does my spouse have to file bankruptcy with me?
No, you may file an individual bankruptcy. However, income from your spouse must be listed in your paperwork. Also, your spouse will continue to be responsible for any debts owed jointly with you.
Will I be able to get credit again?
You will be able to get credit, especially on personal property items like cars and televisions. Buying a house takes longer. Some companies are more willing to extend credit to persons who have filed bankruptcy than other companies are. Discuss this in further detail with your attorney.
Will I have to go to court?
Yes. About three or four weeks after your bankruptcy petition is filed, you will need to attend a Section 341 creditors meeting.
What should I expect at the court hearing?
The trustee and your attorney will ask you questions under oath about the bankruptcy papers that you signed and that your attorney filed for you. Sometimes, but not always, creditors may appear at the hearing and ask you questions.
What do I need to bring with me to the court hearing?
Bring photo identification, such as your driver's license. Also bring proof of your social security number, so bring documentation, such as your social security card or a W-2.
May I keep using my credit cards if I've decided to file bankruptcy?
No. You should stop using the credit cards immediately. Charges run up just before filing can be excepted from discharge and may be considered fraudulent.
Should I transfer assets to friends or family to protect them from being taken by the trustee?
No. Do not transfer anything, as it could be considered fraudulent to do so.
Can I keep my house and my car?
To keep your house, you must continue to make timely payments on the home and keep it insured. Failure to do either could result in repossession of your home. You must continue to make car payments and keep the vehicle insured.
Will I be allowed to keep any property other than a house and a vehicle?
Yes, you will be able to keep certain property, which, under bankruptcy law, is exempt. Consult your attorney about which property is exempt and which is not.
Do I have to list all my assets?
You must list all your assets, whether it is exempt or not. Do not try to hide or transfer your property. Consult your attorney as to legal pre-bankruptcy planning that you can do.
I have a credit card that I would like to not list so that I could use it later. Is this okay?
If your card has a balance owed at the time of filing, you are required to list the debt. If there is no balance owing on the card, you are not required to list it. Be aware, however, that even if you do not list the card, it is possible that the credit card company may find out about your bankruptcy and could cancel the card. Often, credit card companies will allow you to keep a card if you agree to reaffirm the debt for the amount owed. You must disclose all debts and assets, under penalty of perjury. In addition to risking denial of discharge, committing perjury in connection with your case is also a federal crime.
Will filing bankruptcy provide relief from creditors and debt collectors calling?
Yes. Once you file, the automatic stay (freeze order) prevents creditors from suing you, garnisheeing your paycheck, and even from telephoning you. Once you hire an attorney, the attorney can field phone calls from creditors until the bankruptcy is filed. For a time after filing, it is possible that you will still receive a few phone calls until creditors get notice.
How often can I file a Chapter 7 bankruptcy?
You are allowed to file a Chapter 7 once every eight years, measured from filing date to filing date. If you wish to file bankruptcy, and it has been less than eight years since the filing of your Chapter 7 bankruptcy, you may be able to file a Chapter 13 bankruptcy. Discuss your options with your attorney.
What is a Chapter 13 bankruptcy?
A Chapter 13 allows wage earners with regular income to draw up a plan to repay all or a portion of their debts. The debtors submit a plan to make monthly installment payments to the bankruptcy trustee. The trustee will distribute the funds paid to creditors.
Will all my debts be discharged?
Some debts are not dischargeable. Debts that are often not dischargeable include child support and alimony, student loans, most taxes, criminal fines, and civil judgments for driving drunk or under the influence of drugs. If you have these types of debts, you will need to talk with your attorney about your own situation to find out if your debt is dischargeable.