Who can file bankruptcy?
Anyone who lives, operates a business or owns real property in the
United States. Partnerships, corporations and other legal entities
may also file with certain restrictions.
What is the cost of filing?
|
Chapter |
Filing Fee |
|
7 |
$306 |
|
11 |
$1046 |
|
12 |
$246 |
|
13 |
$281 |
When can I file bankruptcy?
Usually when your debts exceed your ability to pay them within a
realistic timeframe, bankruptcy may be your only option. A good
indicator is an ongoing garnishment of your wages, which leaves you
little if any room to make ends meet. There are limitations, such as
not being able to file if you’ve flied previously and it has been less
than six years since that prior filing.
How soon will a bankruptcy stop creditor
actions?
By filing a bankruptcy petition, you will automatically stop any
lawsuits, garnishments, or other proceedings, including home
foreclosures, unless and until a creditor obtains an order to proceed
from the bankruptcy court
Do I have to go to court?
Normally, the only time you will find yourself near a courtroom is at
the initial creditors meeting before the trustee assigned to
administer your case. Very rarely will you appear before a judge.
Will I have to turn over money or property to
the trustee?
In Chapter 7’s, If there do not appear to be sufficient “non-exempt”
assets which the trustee can collect and liquidate, your case will be
designated as a “no-asset case” and creditors will be notified that
there will be no money to pay claims. In Chapter 12 and 13, no
property is surrendered to the trustee other than monthly payments
paid into a reorganization plan
How will filing bankruptcy affect my credit
rating?
A bankruptcy will show up on a normal credit report for up to ten (10)
years after filing. In some cases, however, lenders or credit card
companies may actively solicit recent bankruptcy filers because they
know they can’t discharge debt within six years of filing. Also,
recent bankruptcy filers usually have no long-term debt.
Are there debts that aren’t dischargeable?
Yes.
i) Taxes and other debts to governmental entities; ii) certain debts
for spousal maintenance and/or child support; iii) government-backed
student loans (depending on undue hardship status); iv) debts related
intentional torts (depending on court ruling); debts incurred as a
result of fraud, false pretenses, or intent to deceive.
Can I keep my house and/or my car?
In most instances, yes. There are certain exemptions for many items
of personal property, as well as a homestead exemption. You are
allowed $60,000 in equity in your principal residence and $5,000 in
equity in any vehicle(s) you may own. There are also exemptions,
which allow you to keep clothing, furniture, appliances and retirement
funds, to name a few.
How much are the attorneys’ fees?
The bankruptcy laws mandate that the amount of attorneys fees be
disclosed prior to filing, and are intended to give the attorney a
reasonable compensation for representing a debtor(s). Our fees will
vary depending on the complexity of the case and the estimated time
required to resolve items, which are identified as potential issues
once a case is filed. You can call and schedule an initial
consultation in either our Yuma or Denver office during normal
business hours.
