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?
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?

You must provide a complete disclosure of your financial situation, generally through the attorney’s bankruptcy questionnaire. The attorney will draft the filing documents, which are (1) a petition, schedules of assets and liabilities; (2) a schedule of current income and expenditures; a schedule of executory contracts and unexpired leases; and a statement of financial affairs, and certain other forms which the court requires to be filed.

A chapter 13 case begins by filing the petition and supporting documents with the bankruptcy court serving the area where the debtor has a domicile or residence.

The debtor must also file a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of pay from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts. 11 U.S.C. § 521. The debtor must provide the chapter 13 case trustee with a copy of the tax return or transcripts for the most recent tax year as well as tax returns filed during the case (including tax returns for prior years that had not been filed when the case began). A husband and wife may file a joint petition or individual petitions.

Between 20 and 50 days after the debtor files the chapter 13 petition, the chapter 13 trustee will hold a meeting of creditors. During this meeting, the trustee places the debtor under oath, and both the trustee, and creditors, may ask questions. The debtor must attend the meeting and answer questions regarding the documents filed with the court, his or her financial affairs and the proposed terms of the plan.11 U.S.C. § 343. If a husband and wife file a joint petition, they both must attend the creditors' meeting and answer questions. Bankruptcy judges are prohibited from attending the creditors' meeting. 11 U.S.C. § 341(c). The parties typically resolve problems with the plan either during or shortly after the creditors' meeting. Generally, the debtor can avoid problems by making sure that the petition and plan are complete and accurate, and by consulting with the trustee prior to the meeting.

The courts must charge a $281 case filing fee. Normally the fees must be paid to the clerk of the court upon filing.

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.