Bankruptcy Frequently Asked Questions (FAQ)

Chapter 13 Bankruptcy Questions

1. Overview of Chapter 13 bankruptcy
2. How long will I be making payments?
3. What are the benefits of a Chapter 13 filing?

Chapter 13 Bankruptcy protects individuals from the collection efforts of creditors; permits individuals to save their homes from foreclosure and keep their real estate and personal property; and provides individuals the opportunity to repay their debts through reduced payments.

Individuals may use a chapter 13 proceeding to save their home from foreclosure. The automatic stay stops the foreclosure proceeding as soon as the individual files the chapter 13 petition. The individual may then bring the past-due payments current over the duration of their Plan. Nevertheless, the debtor may still lose the home if the mortgage company completes the foreclosure sale under state law before the debtor files the petition. 11 U.S.C. § 1322(c). The debtor may also lose the home if he or she fails to make the regular mortgage payments that come due after the chapter 13 filing.

Another benefit is that the time your Chapter 13 bankruptcy shows on your credit report is less, so it takes less time to rebuild your credit. You may be able to discharge debts in a Chapter 13 Bankruptcy that would be non-dischargeable under other Chapters, for example, fraud judgments.

4. Why file a Chapter 13 bankruptcy over a Chapter 7?
5. Who can file a Chapter 13 bankruptcy?
6. Can I file a Chapter 13 even though I am not eligible for a discharge?
7. What is the Chapter 13 process?
8. If I am married, but file without my spouse, will my spouse be affected?
9. What is the Chapter 13 Trustee?
10. How does the Chapter 13 filing protect me from my creditors?
11. What will happen to someone who has co-signed on a debt with me?
12. How much of a payment and how long will I make payments in Chapter 13?
13. What debts can I include in a Chapter 13?
14. What are the advantages to filing a Chapter 13 Bankruptcy?
15. What's the hit on my credit?

Chapter 7 Bankruptcy Questions

1. What is Chapter 7 bankruptcy?
2. What are the requirements to file for Chapter 7 bankruptcy?
3. Can I file in Colorado if I just moved here?
4. Am I required to go to debt counseling classes?
5. What debts am I not able to discharge/cancel?
6. What happens to secured debt/loans?
7. What are common reasons for filing for bankruptcy?
8. Can I stop the debt collectors from contacting me?
9. How long after I file for bankruptcy before the creditors stop calling?
10. I am married. Must my spouse also file bankruptcy?
11. Will I lose my job?
12. Will my employer find out about my bankruptcy?
13. What is the Bankruptcy Trustee?
14. Do I have to go to court?
15. What happens to my personal property?
16. Can I keep my car after bankruptcy?
17. Can I keep my house in a bankruptcy?
18. Can I keep my house in bankruptcy, if I have equity in my home?
19. Can I keep my credit cards after bankruptcy?
20. Will bankruptcy stop a wage garnishment?
21. Will bankruptcy stop a foreclosure?
22. Will bankruptcy stop an eviction, "unlawful detainer" action?
23. Will bankruptcy prevent a creditor from continuing a court proceeding or collecting on a judgment?
24. Will bankruptcy remove a lien filed against my home?
25. Can I discharge federal or state income taxes I owe?
26. I am divorced. Will bankruptcy wipe-out my obligation to pay my ex-spouse’s debts?
27. I am a cosigner for a debt. How does bankruptcy affect my obligation?
28. What happens after I file my bankruptcy? How long does the process take?
29. Who notifies the creditors and collection agencies?
30. Who deals with the creditors and debt collectors during the bankruptcy?
31. What if I forget to list a creditor on my bankruptcy papers?
32. What happens to my credit rating after bankruptcy?
33. Can I get credit after bankruptcy?
34. Is there anything I should not do if I am contemplating bankruptcy?
35. Do I need to be a US citizen to file a bankruptcy?

This information pertains to Chapter 13 and Chapter 7 consumer bankruptcy. Each state has bankruptcy laws which apply only in that state. The information contained in the preceding is provided for general information purposes and is not a substitute for a legal consultation and it is not intended as legal advice. Every individual's debt and financial situation is different and you should seek independent legal advice regarding you specific situation.